Homenerk 2 (Chapier 4 The Time Value of Mlancy) dae before 1/30/2023. 11:59 pm Please shes all suar wark te receive full credat, Vive could wrilt the financial ralcelater input forse ar inchude an excel file. 1. An investmatn produces a cask Alw of 5390 in year 1.9460 in year 2 , and 5560 in year 3. If the expected market ate Gor similar investrocoss is 13h, whot is the investment's PV? If the investment wosts $14100, it is worth buyingt in Points) T An investment pigs 5240 it perpotuaty. a) If you want an afnual rehurn of 7%, what is the mavimum amount you would pay for this investment? (1.5 Points) b) If the perpeluity gows at 3% and you roguire an 11% antual relum, what is the maximun artoust yoa would fury bor this investment? ( 1.5 Points) 1 Ascume that an annuity prys $120 annaaily fior 10 years slarting five years fromh now with a disenuat tale of whe. (In ocher woeds, cash flows start at year 5 and goes thrive the cach yoar crating at yor 14.) What is the proseet value of the annuiby todly? (Todry is year - 0) 43 Poins? + Yoe would like so have 52,000,000 saved when you rctire in 30 years. If you puit aside 520,600 annually at the end of the ycar for the next 10 years, assuming your investment returns 7% per yhar, cat you mect yoer retiecment goal? (Please show your work and suate how mack would you accumalale in 30 year.) (3 Ruints) + You ace consibering inveating in a security which will pary yoe 5.00 at the wad of taxt of the neve sen ycan. If the secerity th currently selling foe 9503 , what is the IRR foe investing in this security? 4 3 Pointel