6. (20 pts) An entrepreneur tells you that if you invest in his company, he will give you the equivalent of 30% APR (annual percentage rate) (annual compounding only) for five years. At the end of five years, he will pay you back in a lump sum of $700,000. How much do you invest in this opportunity today to achieve the 30% APR? Show a cash flow diagram. Show your work and final answer(s). 7. (20 pts) You invest in a scheme that will pay you $3000 at the end of each of the next five years, plus a lump sum payment of $20,000 when the five years are up. If you 261 - Homework #3 Page 2 of 2 0 Points require 16% MARR (annual compounding only), how much must you invest in this opportunity today to achieve the 16% MARR? Show a cash flow diagram. (no monthly compounding) Show your work and final answer(s)