Company Corporation 2019 Cash 400 Cost of Goods Sold 600 Debt (LT) 5000 Depreciation 300 Dividends 325 Interest Expense 400 Inventories 1500 Investments (ST) 1250 Loans from Bank (ST) 450 Payables 3000 Property, Plant, Equipment 4800 Receivables 600 Research and Development 250 Revenues 6900 Salaries 3000 Sales and Distribution 400 Shareholders' Equity 100 2020 500 700 5300 300 350 450 1800 1350 450 2600 5450 550 250 7350 3000 350 1300 * All values given are in 1000s of dollars. Asset values are net of depreciation. Questions 5-9 involve the time value of money. For all such problemsboth on this assignment and future onesa timeline is required. 5) A company has some equipment that they know will be obsolete in five years. They expect, though, that it will have some recycling value, and the purchasing department (which handles disposals) thinks they'll be able to get about $5,000 for it at that point. If interest rates are expected to average around 5% over that time period, what is the recycling value of the equipment in today's dollars? 6) You've been given $25,000 for your 21st birthday! You decide the prudent thing to do is control your inclination to spend it now, and instead you lock it into an investment that will earn you 8% interest for ten years, figuring you'll probably need the money then more than you do now. What will the $25,000 be worth 10 years from now? (Before you answer, though, do you expect the final number to bigger or smaller than $25,000? Why?) 7) A company has set up a non-current liability called a provision on its SFP. In this case the account is designed to accumulate funds to pay a large anticipated fine associated with some serious Occupational Health and Safety violations. The investigation and litigation regarding the violations, and the negotiations over the fine are expected to take four years. The company is planning to put $775,000 into the fund at the end of each of the next four years and invest it at 9%. How much money will be in the fund at the end of the fourth year? 8) A company is considering adopting a project that is expected to generate profits of $330,000 per year over the next 35 years. If the average interest rate for that time period is projected by economists to be 11%, what is the project worth in today's dollars? 9) A challenge* question: A student doing problem #6 above gets $11,575 as their answer. What did they do wrong