1. You have been asked by your boss to evaluate three mutually exclusive projects. The cash flow estimates and costs of each project are given below:

	T=0	1	2	3	4	5	6	7
Project A	-3790	200	600	300	1000	2800
Project B	-3790	1000	1000	1000	1000	1000
Project C	-3790	0	0	0	0	0	0	5400

(all numbers are in thousands of dollars)

A. What rate, when continuously compounded, will yield a 14% annual rate?

B. What is the effective annual rate when the 14% rate is continuously compounded?

C. Consider a cash flow of $10 every period in perpetuity starting one period from now (period t=0). What would be its price under continuous compounding of a 10% annual rate?

I NEED HELP WITH DEATAILED EXPLANATIONS STEP BY STEP. THE FORMULAS EXPLAINED AND WHAT YOUR THINKING EVERY WAY THROUGH. THEN AT THE END I NEED A CONCLUSION SUMMERZING HOW I GOT THE ANASWEER AND HOW I APPROACHED IT.

1. Formulas, which you use, in symbols Microsoft Equation Editor. I
2. The same formulas with data from a problem plugged in;
3. Time lines and graphs, where appropriate;
4. Short verbal comments for each step of each problem summarizing your findings;
5. A brief verbal conclusion at the end of each problem;