Corporate Finance Assignment 2 1.Suppose you receive AED 10,000 at the end of each year for the next four years. If the interest rate is 8%, what is the present value of these cash flows? What is the future value in four years of the present value you computed in (a)? a. b. 2.The University tuition is $15,000 per year, payable at the beginning of the year. You expect tuition to increase at a rate of 5% per year over the 4 years of your study present value of the tuition payments if the interest rate is 5% per year? How much would you need to have in the bank now to fund all of your tuition? You are running a hot Internet company. Analysts predict that its earnings will grow at 30 per year for the next five years. Your company has just announced earnings of AED1,000,000. What is the present value of all future earnings if the interest rate is 8%? (Assume all cash flows occur at the end of the year.) 4. Reem has borrowed AED 3,000,000 from Al Mashreq Bank The annual interest rate on this loan is 6 percent and the loan is to be repaid over five years with equal payments at the end of each year. What will be the total interest payments over the five years? 5.Hamad will receive the following payments at the end of the next three years: AED 70,000, AED 80,000, and AED 85,000. Then from the end of the third year through the end of the tenth year, he will receive an annuity of AED 60,000. At a discount rate of 10 percent, what is the present value of all future benefits? I a