a. What is the value today of receiving $500,000 from the sale of an old machine at the end of six years, assuming an interest rate of 8%, compounded semiannually?

b. You want to invest money in a project that yields 6% return, compounded semiannually. You would like the project to have a value of $10,000,000 four years from now. How much must you invest today to accomplish this goal?

c. Adelphi Corporation hires a new chief executive officer and promises to pay her a bonus of $2 million per year for 10 years, starting at the end of the first year. The value of this signing bonus (assuming an interest rate of 8%) at the time of hiring is: