NPV of annuity, Insurance. Shady insurance offers "free" insurance:if iyou pay $1000 in premiums (at the beginning) of each year for 30 years, it will provide $50,000 of term life insurance. At the end of 30 years, Shady will refund $30,000 to you, making the insurance "free." Your cost of captial is 8%.

A) Using the tables, compute the present value of the stream of your 30, $1000 payments to Shady.

B) Using the tables, compute the present value of the $30,000 lump sum payment from Shady Insurance to you.

C) What is the true cost of the "free"insurance?

3) What is the true cost of the "free"insurance?