A. Welders Limited wants to replace an old machine in its processing plant. It is estimated that a replacement will cost $200 000 in five years. i. Given that the existing interest rate is 12%, how much money should the firm invest now to buy a new machine in five years' time? (3 marks) ii. Welders has an option to invest in a fixed deposit account at an interest rate of 10%. How much should be invested at the beginning of each year for the next five years to achieve this goal? (3 marks) iii. If interest rate increases from 10% to 12%, by how much would the annual investment at ii. change? (4 marks) B. Determine combined present value, at the end of year three, of $2 000 received at the end of year one, $4 000 received at the end of year two and $6 000 received at the end of year three, all sums deposited at 5% per annum. (4 marks) C. How long will it take for a firm to accumulate $1 000 000 if $250 000 is deposited in a financial institution which offers an interest rate of 12% per annum compounded quarterly? (3 marks) D. What is an annuity? Distinguish between TWO (2) types of annuities and give an example of each. (3 marks