5. Ordinary Annuities - Remember, ordinary annuities are amounts paid at the end of each period. a. Future values i. Advanced Engineering Group's cash flow forecast indicates that for the next 24 months, the Group will be able to invest $50,000 in cash at an annual interest rate of 6.98% (monthly rate = 6.98%/12). The Group will invest the cash at the end of each month. At the end of 24 months, how much cash will Advanced Engineering Group have accumulated through this investment practice? ii. What is the amount that Advanced Engineering Group accumulates if it invests $300,000 every six months for two years at the same annual interest rate (semiannual rate = 6.98%/2)? iii. Advanced Engineering determines that for an extra $5,000 in administrative expense over two years, it could invest $25,000 semimonthly (twice per month) at the same annual interest rate as in part a. (semimonthly rate of 6.98%/24). Does the extra interest earned justify the additional administrative expense? b. Present values i. ABC Corp. wishes to invest a fixed sum at 4.65% and withdraw $12,000 at the end of each month for the next three years. How much ABC will need to invest? In other words, what is the present value of an ordinary annuity of $12,000 for 36 periods, discounted at a rate of 4.65%/12 per period? ii. Assume that ABC Corp can earn 4.65%, but needs to withdraw $12,000 for 72, not 36 months. How much cash must it now invest to meet its $12,000/ month needs? iii. Assume that ABC Corp. can only earn 3.5% on its investment. What sum does it now need to invest to meet its $12,000 / month cash needs for 72 months