accounting homework. Please answer the questions that is attached below

AAE 419 Extra Credit Exercise October 25, 2016 Time Value of Money Problems 1. Margaret Putter is a professional golfer who has just signed a $2 million contract. The terms are five annual payments of $400,000 each. Determine the present value of the contract to Margaret, assuming her interest rate is 10%. 2. Suppose that Margaret is able to reinvest her annual payments of $400,000 in an investment yielding 10% per year. How much will she have after 5 years? 3. Sally Investor is offered the opportunity to invest $10,000 with a promise of receiving $11,400 one year later. Her response is: \"I reject this investment. I have only $2,000 of my own money, and for an $8,000 loan, the bank requires 10 percent interest, so my net return would be only $10,600. Would you be satisfied with a 6 percent return these days?\" Did Sally make the right decision? Critique the analytical approach