100% s SmartArt Revievw Styles AaBbCeDdEe AaBbCcDdEe AaBbCcD AaBbCcDdl AaBb( Heading 1 No Spacing Heading 2 Title 2l Please read the questions carefully. Please draw the cash flow diagrams and explain the steps that you are going to approach to solve the problems then solve the problem. Show the details in solving the problems. Please write legible hand writing, otherwise there is a deduction from your grade 10 points. Missing Cash Flow Diagramn is deductible points equal to 20% of the total points for each question. Piease answer cach question on one page in front and back Q1) What amount will be required to purchase, on man's 40th birthday, an annuity to provide him with thirty equal semi-annual of $1000 cach, the first to be received on his 50th birthday, if nominal interest rate is 12% compounded semi-annually? Q2LAn engineer is thinking of starting a part-time consulting business next September 5,on his 40th birthday. He expects the business will require an initial cash outlay of S5000, to come from his savings, and will cost S500 per year to operate; the business ought to gencrate S2000 per year in cash receipts. During the 20 ycars that he expects to operate the business he plans to deposit the annual net procecds in a bank each year, at an interest rateof% per year compounded annually. When he retires, on his 60th birthday, the engincer expects to invest whatever proceeds plus interest he then has from the business in a long-term savings plan that pays 10% per year, compounded annually. What is the maximum amount he could withdraw from the savings plan each year during his retirement and still have the funds last 15 years. 03) The Deadeye Distillery is opening a new production facility at Sweetwater Springs. Two types of stills are being considered and the following cost estimates have been developed: Alternative Data Life, Years First Cost Salvage Value M&O Cost M&O Gradient MASHER SQUEEZER $10,000 S15,000 2.000 800 200 400 Using Net Present Worth Analysis, detcrmine which altemative should be sclected. before lax MARR of 25%. Use a