1. A business proposition is offered to you: you can invest 120,000 in opening a atore selling jeans. The proposition includes a study that forecasts the project will generate $25,000 in profits after 1 year, $35,000 after 2 years,40,000 after 3 years and $45,000 after 4 years. Do you accept the business proposition or not, if the prevalent interest rate is 5% ? 2. You are presented with two business opportunities. The first might generate $20,000 after 1 year, 30,000 after 2 years, and $40,000 after 3 years. The second might generate $40,000 after 1 year, 30,000 after 2 years and 20,000 after 3 years. Which proposition should you choose, if the prevalent interest rate is 3%? 3. The company where you work is being sold for 200,000. The company's income statement indicates current profits of $7000 which have yet to be paid out as dividends. Assuming the company will remain on the market in the infinite future, and the interest rate will remain constant at 5%, at what constant rate does the owner believe that the profits will grow? 4. You are comparing two investment opportunities. The first generates $15,000 after one year and indefinitely. The second generates $16,000 after two years and indefinitely. Which opportunity would you prefer if the interest rate is 10% 5. You decide to leave your job that pays $60,000 per year to open your own business selling hats. Based on market research, you can sell 150,000 units during the first year at a price of $25 per unit. Annual operating expenses amount to $3,700,000. What will be your accounting profit and economic profit during the first year of operation