Pension payments Assume that a firm anticipates needing to make pension payments in the following amounts in the coming five years: $215, 232, 248, 260, and 269 million. After that point, the firm assumes a simple model of 3% perpetual annual growth. WACC is estimated to be 8%. a. What is the present value of these payments, under the given assumptions? b. Conduct a sensitivity analysis in a two-way data table, varying WACC from 6 to 10% in 1% intervals and terminal growth from 1 to 5% in 1% intervals. c. Conduct a Monte Carlo analysis in which all of the figures above are used as means of normal random variables and the standard deviations are as follows: $10 million for each of the cash flow estimates, 1% for WACC, and 0.5% for terminal growth rate. Use 1,000 iterations in your estimate and report the following statistics: i. Mean ii. Standard deviation iii. Empirical 95% confidence interval iv. Theoretical 95% confidence interval v. Minimum vi. Maximum