Part a - e

Problem 2.01 (i.e. Day 2, Problem 01). PART A: Draw the following cash flow timeline. Specify all times in YEARS. Label everything. Make it bold and beautiful. FYI: You'll be computing the present value of each cash flow using a discount rate of 7%-so leave yourself some room to "do the math 1. You receive $175 in 3 years 2. You receive $100 in 4 years and 2 months. 3. You receive $350 at the end of year 5 4. You receive $225 at the beginning of year 18 5. You receive $35 at the beginning of the 3"d decade-from now. o 6. You receive $173 at the beginning of the 1' decade-from now.Od 7. You receive $150 in 32 months 8. You receive $1800 at "time: 41" - with time measured in years. 9. You receive $100,000 in the middle of the 2nd century-from now. Part B: Using an annual discount rate of 7%, compute the overall (total) present value of the cash flows as described in the 1", 3rd, sth, 7h, and 9th lines ("bullet-points") above. Enter your value, without a dollar sign, as a single value (the sum of the five cash flows) in Polylearn. 51 Part C: Repeat Part B, but now find the present value (of the 1", 3rd, 5th, 7th, and 9th cash flows) using a discount rate of 0%. hint-hint.. the answer can be obtained very quickly! ). Part D: Using a discount rate of 7% per year, what is getting $100,000 in the middle of the 2nd century worth today ? (Enter the value into Polylearn-with, as always, at least 5 digits of precision). For discussion: Does that seem right? If it is right, then what might you expect a large pizza to cost at that time? (Assume that a pizza costs $20 today, and assume that the price of the pizza grows at 7% per year). If instead, the price of the pizza grows at only 2.8% per year, what do you expect a pizza to sell for in 150 years? Part E: Using a discount rate first four lines above . added together as one value (ie find the future value of cash flows #1, #2, #3, #4 collectively). Enter this single value into Polylearn. of 7%, find the overall future value (10vearsfromtoday) of the cash flows in the