4. Present value of Annuity Henry is going to receive $150 every year for 12 years. The annual interest is 6%. Calculate the present value of Henry's annuity. PV = 5. Perpetuities- annuities last forever Victoria is expecting to receive $2,000 a year forever. Interest rates are expected to remain constant at 5%. Calculate the present value of Victoria's perpetuity. PV = 1/r PV = Payback period 6.Horizon Ltd considering a project that will require an investment in machinery of $80,000 and which will generate an income of $15,000 in the first year, increasing by $5,000 each subsequent year. The project is expected to last for 5 years and the machinery is not expected to have any residual value. The cost of capital for Horizon is 10%. a. calculate the payback period. b. Calculate the NPV