1) A company will need $400,000 five years from now in order to replace to purchase a new CRM system. How much money must be set aside today for this purpose if it wants to fund this in full today and it can earn 8.25% per year on its investments?

2) Norris Lowe Industries has an unfunded waste site cleanup liability of $5 million that must be paid out in full 15 years from now. If the relevant annual discount rate is 7.35%, what is the present value of this liability?