Shady Insurance offers free insurance: if you pay $1,000 in premiums (at the beginning) of each year

Question:

Shady Insurance offers "free" insurance: if you pay $1,000 in premiums (at the beginning) of each year for 30 years, it will provide $50,000 of term life insurance. At the end of 30 years, Shady will refund $30,000 to you, making the insurance "free." Your is 8%.
Required:
a. Using the tables, compute the present value of the stream of your 30, $1,000 payments to Shady.
b. Using the tables, compute the present value of the $30,000 lump sum payment from Shady Insurance to you.
c. What is the true cost of the "free" insurance?
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...