**Bonus calculation Questions (5 Marks)** Calculate the Present value of the investment in a machine with a 5 year life span. It will generate profit in the following way: $1000 at the end of year 1, $1500 at the end of year 2, $2600 and the end of the 3rd year, $3000 at the end of the 4th year and finally has a salvage value of $1,000 at the end of the 5th year. Assume a discount rate of 13% if the investor requires a 10% rate of return at what price would it be appropriate to purchase this asset? a. At a price Equal to $6,233 b. At any Price below $5,609 C Any price above $6,233 d. Any price below $6,233 Which of the following forms of financing can finance working capital accounts? a. conditional sales contracts b. a financial lease a term loan d. consignment e. Factor Financing f. Both D and E What is the present value of $1,000 received one year from now bearing interest at 10%? a. $ 909 b. $ 909 c. $ 500 d. $1,000