11) a) Youre interested in a few different investments, one of which is Investment "K5". The current price to invest in K5 is $1,080. If you purchase it today, its expected to: pay you $289, 3 years from today. pay you $502, 8 years from today. pay you $1,402, 16 years from today. 30) Given the risk of the investment, its expected return, E(r), is 6.5% when expressed as an EAR.Determine the Profitability Index of the investment.

b) Using an annual effective discount rate of 8.2%, determine the future value 23 years from today, of receiving $364, 7 years from today, and also receiving $1,061, 14 years from today. Provide and answer with at least 4 significant digits