A. What is the net present value of an investment that yieds the following cash flows and could be sold for $10 millions at the end of 5 years? Utilize a 10% discount rate.

Year 1:0

Year 2: $1,000,000

Year 3: $1,000,000

Year 4: $1,000,000

Year 5: $1,000,000

B. What is the debt service payment on a loan with the following terms ?

Loan amount : $100,000

Interest rate : 10%

Term : 7 years