1)Phil Goode will receive $102,000 in 19 years. Sounds great! However if current interest rates suggested for discounting are 18 percent, what is the present worth of his future pot of gold? (Use a Financial calculator to arrive at the answer. Round the final answer to the nearest whole dollar.)

Present value?

2)Carrie Tune will receive $18,250 a year for the next 19 years as payment for a song she has just written. If a present 8 percent discount rate is applied: (Use a Financial calculator to arrive at the answers. Round the final answers to the nearest whole dollar.)

a-1. Calculate the present value.

b-1. Calculate the present value if the payments will be made at the beginning of each year.

3)Sheilas Society Clothing Manufacturer has collection centres around the country to speed up cash collections. The company also makes its disbursements from remote disbursement centres, so cheques written by Sheilas take longer to clear the bank. Collection time has been reduced by two days and a half days and disbursement time has been increased by one and a half days because of these policies. Excess funds are being invested in short-term instruments yielding 5 percent per annum.

a. If the firm has $4.90 million per day in collections and $3.90 million per day in disbursements, how many dollars has the cash management system freed up? (Enter the answer in dollars not in millions.)

Freed-up funds $

b. How much can Sheilas earn per year on short-term investments made possible by the freed-up cash? (Enter the answer in dollars not in millions.)

Interest on freed-up cash $