1. (6 Points) Assume that a company is planning to acquire a new telephone system. The system can be purchased for $8,085.96. It can be leased for 60 months on a capital lease for $371.92 down (an initial payment at the time of the lease) and $185.96 per month. What is the interest rate embedded in this lease agreement? 2. (12 points) Your dad is now 45 years old and plans to retire at age 65. He currently has a stock portfolio worth $450,000. The portfolio is expected to earn a return of 8 percent per year. a If your dad does not save another penny, what will be the total value of his investments when he retires at age 65? b. Assume he plans to invest an additional $12,000 every year in his portfolio for the next 15 years (starting one year from now). How much will his investments be worth when he retires at 65? C. Assume that your dad expects to live 25 years after he retires (i.e., until age 90). Today, at age 45, he takes all of his investments and places them in an account that pays 5 percent per year (use the scenario from part b in which he continues saving and assume that the additional savings also earn a return of 5 percent per year). If he starts withdrawing funds on the day he turns 66, how much can he withdraw every year and leave nothing in the account after a 25th and final withdrawal when he turns 90