1)Sara wants to invest her funds in a bank & after 5 years withdraw a total of $100,000. How much must she put in the bank now, in order to withdraw $100,000 after 5 years?

2)Mark will invest in a project that will generate a value of $5,000 annually for 5 years. Assuming that interest rates are 10% every year, calculate the value of his gains today.

3)Assume Investment in Project "A" produces the following cash flows, calculate the present value of cash flows.

Years Cash flow

1 1000$

2 2000$

3 5000$

4 450$

4)Ahmed expects to receive $10,000 after 2 years from now, $5,000 after 3 years & $8,000 after 5 years from her investment in a specific project. If she deposits all her cash flows in the bank the minute she receives them, how much will she have after 8 years? Assume annual interest rate is 6.5%.