5. Your inheritance will pay you $100,000 a year for five years beginning now. You can invest it in a CD that will pay 7.75 percent annually. What is the present value of your inheritance? (Round to the nearest dollar.) A) $399,356 B) $401,916 C) $433,064 D) $467,812 6. Your father is 60 years old and wants to set up a cash flow stream that would be forever He would like to receive $20,000 every year, beginning at the end of this year. If he could invest in account earning 9 percent, how much would he have to invest today to receive his perpetual cash flow? (Round to the nearest dollar.) A) $222,222 B) $200,000 C) $189,000 D) $235,200 7. Ali will invest $2,800 in year one, $3,700 in year two, and $4,900 in year three. If he can earn 7percent on an investment that he makes, what is the future value of his investments at the end of three years? A) $14,241 B) $13,768 $11,320 C) D) $12,999 8. Moon Corporation's stock has an expected return of 13.2% and a beta of 1.60. If the risk free rate is 3%, What is the market risk premium? A) 6.38% B) 4.95% C) 7.08% D) 5.83%