Note: You should construct cash flow diagrams for Questions

1. For the cash flow shown below, determine the value of G that will make the future worth in year 4 equal to $6000 at an interest rate of 8% per year. (15 points) Year 1 2 Cash Flow O S2000 2000-G 3 2000-2G 4 2000-3G 2. The effort required to maintain a scanning electron microscope is known to increase by a fixed percentage each year. A high-tech equipment maintenance company has offered it services for a fee of $45,000 for the first year (i.e., end of year 1) with increases of 6% per year thereafter. If a biotechnology company wants to pay for a 3-year contract up front to take, how much should it be willing to pay now if it uses an interest rate of 15% per year? (20 points) 3. Determine the present worth of a maintenance contract that has a cost of $50,000 in year 1 and annual increases of 8% per year for 10 years. Use an interest rate of 8% per year. (10 points)