Corporate Finance Practice Midterms and Solutions 175 MIDTERM; OCTOBER 1985 Problem 1 PV of annual expenses from age 65 to 85 = 170271.274 Annuity needed each year for 40 years to have FV of 170271= 384.712752 PROBLEM 2 Initial Investment = 50000 Annual Cashflow NPV= -50000 +51200 (PVA, 10, 15%)= 206960.954 Revenues 250000 Rent 48000 Salary Exp 120000 Deprec'n 5000 …