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2. Invest donations in different installments over 12 vears First method: Future Value Future Value Amount Years 1.6 Year 12 EAR of chosen CD in

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2. Invest donations in different installments over 12 vears First method: Future Value Future Value Amount Years 1.6 Year 12 EAR of chosen CD in exercise 1 30416% Lump sum donation in Year 0 $250.000 (note. "Year 0" = today) Annuity donation in Years 1-6 $75 000 Annuity donation in Years 7-12 $150,000 Total FV of all donations in year 12 $0 Second method: Year Donation Amount 0 $250,000 1 $75 000 2 $75 000 $75,000 $75 000 $75,000 Same Answer $75 000 7 $150 000 8 $150,000 9 $150 000 10 $150 000 CF NPV 51,083,670 16 11 $150 000 Year O investmet (S250,000) 12 $150,000 NPV of cash flows chinemember not to include year in the NPV but add it to the NPV of yoars 1-12) FV of NPV in 12 yrs

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