a) With an 8% interest rate, determine the present value of $25,000 to be received at the end of 20 years from now given quarterly compounding. (30 marks) b) A project requiring an initial outlay of $15,000 is guaranteed to produce a return of $20,000 in 3 years' time. Use the internal rate of return method to decide whether this investment is worthwhile if the prevailing market rate is 8% compounded annually. (40 marks) c) Is it advisable to pay $3.500 for an annuity that guarantees a payout of $750 annually for the next 7 years given that you can invest your elsewhere at 9% annually? (30 marks)