Please provide answers with explanations and caculations:

Q6

The following information relates to questions 6-10:

You are the head of Corporate Investments for Everspring, Corp, a real estate developer. You can invest $9,500,000 of your firm's money in some of the real estate properties below or use all or a portion of the funds to pay down your existing corporate debt of $10,000,000, which carries an interest rate of 10%. Cash flows for each property are as shown below:

Property AProperty BProperty CProperty D

Initial Investment(100,000)(500,000)(2,000,000)(6,500,000)

Year 1 30,000(100,000) - 1,000,000

Year 2 40,000200,000- 1,500,000

Year 3 50,000200,000- 2,000,000

Year 4 60,000200,000- 2,500,000

Year 5 70,000200,000 4,000,000 3,000,000

Assume cash flows (Years 1-5) occur evenly over the period.

If the company's payback period is 30 months, how many properties would you invest in?

Enter: 0, 1, 2, 3, or 4

Q7

The following information relates to questions 6-10:

You are the head of Corporate Investments for Everspring, Corp, a real estate developer. You can invest $9,500,000 of your firm's money in some of the real estate properties below or use all or a portion of the funds to pay down your existing corporate debt of $10,000,000, which carries an interest rate of 10%. Cash flows for each property are as shown below:

Property AProperty BProperty CProperty D

Initial Investment (100,000)(500,000)(2,000,000)(6,500,000)

Year 1 30,000 (100,000)- 1,000,000

Year 2 40,000200,000- 1,500,000

Year 3 50,000200,000- 2,000,000

Year 4 60,000200,000- 2,500,000

Year 5 70,000200,0004,000,000 3,000,000

Assume cash flows (Years 1-5) occur at the end of the period.

What is the net present value of Property B?

Q8

The following information relates to questions 6-10:

You are the head of Corporate Investments for Everspring, Corp, a real estate developer. You can invest $9,500,000 of your firm's money in some of the real estate properties below or use all or a portion of the funds to pay down your existing corporate debt of $10,000,000, which carries an interest rate of 10%. Cash flows for each property are as shown below:

Property AProperty BProperty CProperty D

Initial Investment (100,000)(500,000)(2,000,000)(6,500,000)

Year 1 30,000(100,000)- 1,000,000

Year 2 40,000200,000- 1,500,000

Year 3 50,000200,000- 2,000,000

Year 4 60,000200,000- 2,500,000

Year 5 70,000200,0004,000,000 3,000,000

Assume cash flows (Years 1-5) occur at the end of the period.

What is the internal rate of return of Property D?

Round answer to one decimal place, ex: 18.9

Q9

The following information relates to questions 6-10:

You are the head of Corporate Investments for Everspring, Corp, a real estate developer. You can invest $9,500,000 of your firm's money in some of the real estate properties below or use all or a portion of the funds to pay down your existing corporate debt of $10,000,000, which carries an interest rate of 10%. Cash flows for each property are as shown below:

Property AProperty BProperty CProperty D

Initial Investment (100,000)(500,000)(2,000,000)(6,500,000)

Year 1 30,000(100,000)- 1,000,000

Year 2 40,000200,000- 1,500,000

Year 3 50,000200,000- 2,000,000

Year 4 60,000200,000- 2,500,000

Year 5 70,000200,0004,000,000 3,000,000

Assume cash flows (Years 1-5) occur at the end of the period.

What is the proper order of investments (most worthwhile to least) if you used the Profitability Index (PI) to assess?

Enter the four letters in the proper sequence, ex: DBAC

Q10

The following information relates to questions 6-10:

You are the head of Corporate Investments for Everspring, Corp, a real estate developer. You can invest $9,500,000 of your firm's money in some of the real estate properties below or use all or a portion of the funds to pay down your existing corporate debt of $10,000,000, which carries an interest rate of 10%. Cash flows for each property are as shown below:

Property AProperty BProperty CProperty D

Initial Investment (100,000)(500,000)(2,000,000)(6,500,000)

Year 1 30,000(100,000)- 1,000,000

Year 2 40,000200,000- 1,500,000

Year 3 50,000200,000- 2,000,000

Year 4 60,000200,000- 2,500,000

Year 5 70,000200,0004,000,000 3,000,000

Cash flows (Years 1-5) occur at the end of the period. Assume the expected cash flows actually occur for each investment. If you invested in the correct projects, and used any excess proceeds when received to pay down the debt, how much (debt-free) cash will your company have at the end of Year 5?