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 SE 261 - Homework #3 Page 2 of 2 100 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). 8. (5 pts extra!!) You want to invest in a project which will start producing positive cash flows of $100,000 per year for 8 years, beginning at the end of year 3 and continuing until the end of year 10. If your MARR is 20% per year, what is the most you should invest in this opportunity TODAY