1.) What is the most that you would be willing to pay today for the following stream of cash flows? Assume that your required rate of return on such an investment is 8.5%. The cash flow stream consists of the following amounts at the ends of years 1 through 5, respectively: $5000; $7000; $9000; $11000; $4000.

2.) An investment promises a lump-sum payout of $100,000 at the end of 10 years from today. What is the most that you would be willing to pay for this investment today if your required rate of return is 8% for the coming 4 years, and 12% for the next 6 years after that?