4. Your professor is starting a new company, NetFlops. It will be an online streaming service showcasing only the greatest movie flops. However, to acquire the rights to the movies and to build out sufficient server capacity, she needs some startup capital. In exchange for $50,000 today, she offers to give you 50% of all future cash flows (she keeps the other 50% because it's her amazing idea and she'll manage the company). She expects cash receipts to be $6,000 per year starting in year 1 until year 9 . She then expects the company will close due to poor management, and there will be no other cash flows. a. Should you give her the $50,000 when you could earn 12% interest per year (i.e., annual compounding) in a savings account? Please show your work. b. Should you give her the $50,000 if the company does not close and stays in business forever? 5. You are in the process of purchasing a new automobile that will cost you $27,500. Since you do not have the entire amount handy, the dealership is offering you either a $2500 rebate (applied toward the purchase price) or 1.9%(APR) financing for 48 months (with payments made at the end of the month). Also, you have another financing option: You have been pre-approved for an auto loan through your local credit union at an interest rate of 6.5% EAR for 48 months. If you take the $2500 rebate and finance your new car through your credit union, your monthly payments will be how much more or less compared to the situation where you forgo the $2500 rebate and finance your new car through the dealership at the dealership rate. Also, indicate which option will you choose