Brad buys a house in Fermentation Station, NJ for $350,000. He pays 20% as a down payment today, and he will finance the remainder of the loan. He will make 60 equal monthly payments of $8,000, beginning one year from today, plus a balloon payment one month after the final $8,000 payment, which will completely pay off the remainder of the loan. If the stated annual interest rate is 18%, compounded monthly, find the balloon payment that Brad will make at that time. Select one: a. $15,032 O b. $42,500 . c. $36,661 d. $27,668 o e. $59,054 0 You are considering two mutually exclusive investments. Project A requires a $500 investment today, and will pay a return of $1000 one year from now, plus another $1000 two years from now. Project B requires $3000 to be invested today, but will pay an annual return of $400, forever, beginning one year from today. The effective annual interest rate is 8%.Which project should you choose, and why? Select one: O a. Project A, because it has the higher NPV 0 O b. Both projects, because they both have NPV > 0 c. Project B, because it has the higher PL d. Project A, because it has the higher PI e. Project B, because it has the higher NPV 0 O Gaby would like to purchase a new mixer for her bakery. The mixer costs $4000, and will last 15 years. She expects to pay $500 each for replacement parts 4, 8 and 12 years from now, plus an additional $500 in maintenance in year 8. Given a stated annual interest rate of 6%, compounded semiannually (twice per year), find the equivalent annual cost. Select one: O a. $450 O b. $600 O c. $545 O d. $475 o e. $430