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2. (50) A 20 year project requires an investment of $300k. For the first 10 years, the project generates $40,000 per year. It generates no

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2. (50) A 20 year project requires an investment of $300k. For the first 10 years, the project generates $40,000 per year. It generates no income in years 11 and 12. In years 13-20 it generates $100k por year. label values in units in Sk, so $30,000 is 30. You may 2 (20) Draw the cash flow diagram for this project. b. (10) Write an expression for the the present value of this project in terms of discount factors like (P/A,i, N) etc. c. (5) Find the present value if i = 10%. d. (15) A bank pays 5% interest on a 10 year CD compounded quarterly (4 times per year). Find 1. The effective annual interest rate to three decimal places (x.yzk%) ii. The value of an initial investment of S1000 after four years

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