just 4,6,9 please

CONCEPT OF TIME VALUE OF MONEY "217 6. Milton is trying to convince you to invest in his restaurant deal and make ten annual pay. ments of $500, with the first payment due today. If the market rate of interest is 6%, how much will this investment be worth at the end of ten years? 7. An investment banker is offering a fixed-income investment that guarantees an 8% interest rate. It requires you to make monthly payments, with the first payment due today. If your goal is to have $10,000 in ten years, how much would you need to invest monthly to reach your goal? If you made annual payments with the first payment due today, what would your annual payment need to be for this investment to be worth $10,000 at the end of the ten- year period? 8. Your restaurant needs some kitchen remodeling, and the proposal for a new dishwasher is $55,000. Your banker will make you a loan at 8% interest compounded monthly over the next five years. What would be your monthly debt service payment to the bank? If your banker required a 10% down payment, how would this affect your monthly payment to the bank? 9. How much would you pay for an investment that promises you $1,500 each year for ten years if the going interest rate in the market is at 6.5%? 10. ETHICS * Joseph just finished talking to five different bankers regarding a loan for his limited-service hotel. He needs $100,000 for a renovation project. However, with his current credit rating, he can only secure a loan of $75,000. Knowing that he has future contracts coming in with a few long-time corporate customers, he hopes he will be able to achieve higher sales next year. With that in mind, he is thinking about increasing his sales numbers to make his cash flow look better. Of course, in time value of money calculations, higher cash flows yield a higher prosent value, which would allow him to borrow more money. Is Joseph right in dolng this? Concept Check Addition of a Spa at a Resort Hotel Powell Hospitality Ltd. is proposing the redevelopment of the spa at its Whispering Winds Resort. Currently the spa space is leased to a spa management company, but Powell Hospitality Ltd. wants to bring the operation in-house to have more control. The spa facility will also be expanded from its current 5,000 square feet to 10,000 square feet, with 8,000 square feet of indoor space and 2,000 square feet of outdoor treatment space. Powell Hospitality Ltd. believes it is time to expand its facility because the health and fitness industry has experienced rapid growth due to increasing health awareness. The goal of the spa facility will be to offer guests of the resort, visitors to the area, members, and people living and working nearby the opportunity to experience a world-class spa facility, The spa will provide an additional revenue stream for the resort and should increase occu- pancy during the slow periods by offering spa conference packages. On average, it is estimated