A. Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 $ 6,000 $9,000 2 7,000 8,000 3 8,000 7,000 4 9,000 6,000 Total $30,000 $30,000 The discount rate is 13%. Use Excel or a financial calculator to solve the homework. Round answers to the nearest dollar. Required: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment. B. Julie has just retired. Her companys retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $159,000 immediately as her full retirement benefit. Under the second option, she would receive $22,000 each year for seven years plus a lump-sum payment of $67,000 at the end of the seven-year period. Use Excel or a financial calculator to solve. Round answers to the nearest dollar. Required: 1a. Calculate the present value for the following assuming that the money can be invested at 11%. 1b. If you can invest money at a 11% return, which option would you prefer? First option Second option C. Fraser Company will need a new warehouse in eight years. The warehouse will cost $410,000 to build. Use Excel or a financial calculator to solve. Round answers to the nearest dollar. Required: 1. What lump-sum amount should the company invest now to have the $410,000 available at the end of the eight-year period? Assume that the company can invest money at twelve percent. 2. What lump-sum amount should the company invest now to have the $410,000 available at the end of the eight-year period? Assume that the company can invest money at thirteen percent. D. The Atlantic Medical Clinic can purchase a new computer system that will save $11,000 annually in billing costs. The computer system will last for nine years and have no salvage value. Use Excel or a financial calculator to solve. Round answers to the nearest dollar. Required: Up to how much should the Atlantic Medical Clinic be willing to pay for the new computer system if the clinics required rate of return is: E. The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the states newest millionaire. By choosing the six winning numbers on last weeks state lottery, Mr. Ormsby has won the weeks grand prize totaling $1.32 million. The State Lottery Commission has indicated that Mr. Ormsby will receive his prize in 20 annual installments of $66,000 each. Use Excel or a financial calculator to solve. Round answers to the nearest dollar. Required: 1. If Mr. Ormsby can invest money at a 8% rate of return, what is the present value of his winnings?