A project has a duration of 5 years. The project has an init…

A project has a duration of 5 years. The project has an initial cost of $3,900 and annual costs of $500. The project has annual benefits of $2,000 in years 1-4 and $2,500 in year 5. Assume end of year convention for all cash flow. What is the simple payback period?

A one-time deposit of $7,000 was made into a savings account…

A one-time deposit of $7,000 was made into a savings account in 2018. The account earned 2.45% interest compounded annually. Since 2018, inflation has averaged 4% per year. If you closed the account today and withdrew all funds, how would you describe the purchasing power of those funds today?