Calculate the following:

A. What is the amount of annuity purchase required if you wish to receive a fixed payment of $240,000 for 20 years? assume the the annuity will earn 7 percent per year.

B. Calculate the annual cash flows from a $2.5 million, 20 year fixed payment annuity earning a guaranteed return of 7 percent per year if payments are to begin at the end of the current year.