a) A real estate investment has the following expected cash flows:

Year Cash Flows 1 $14,000 2 8,000 3 19,000 4 20,000 The discount rate is 7 percent. What is the investments present value? Round your answer to 2 decimal places; for example 2345.25.

b) Michael wants to have $50,000 in 10 years on a savings plan that requires monthly contributions. If he can earn 9 percent APR with monthly compounding on the savings plan, what is the amount that he will have to invest every month for the next 10 years? Round it to two decimal places and do not include the $ sign, e.g., 1234.56.