5) In input markets households are sellers and businesses buyers. In the table to the right of the circular flow model i) list what each trade for in the inputs market. (4+2 marks) Businesses Households LTPUT ii) In the outputs market households exchange for 6) You are considering buying bonds as an investment. You notice one that will pay a face value of $10,000 in one year. Interest rate is 6 percent. Today i) you are willing to pay $ (show calculation below). ii) Why? (2+2 marks) Calculation 7) ABC Software company offers you their ERP software for $7,000 telling you that it will give $9,000 cost savings over the next three years. Interest rates are now ten percent (10%). i) Calculate the present value and show full calculations. ii) Should you purchase and ill) why? (2+1+2 marks) Present value is $ Purchase? O Yes O No Calculation Comment:8) Below is a table containing information from Fly by Night Paper Airplane Company daily production numbers. i) Calculate the missing data for the table. ii) Recommend the quantity of engineers and output which maximizes revenue and profits. (2+3+2marks) Q of Engineers Output Q MP MRP 0 0 40 2 74 3 102 4 124 5 140 paper airplanes sell for $12/each and each engineer costs $300/day iii) Prove the numbers graphically. Fully 600 label the graph. 500 Recommendations: 400 Marginal Revenue Product - Marginal Cost 300 200 100 0 1 2 3 5 6 Quantity Labourers