Problem 1: Future Value of an Annuity Find the future value of the following annuities. The first payment in these annuities is made at the end of year 1, so they are ordinary annuities. (Hint: If you are using a financial calculator, note that you can leave the values in the TVM register, switch to Begin Mode for question d.. press FV, and find the FV for the annuity). You can also use the electronic calculator found in this link and ensure to select "PMT made at the end", when answering question d.: https://www.calculator.net/finance calculator.html a. $400 per year for 10 years at 10% b. $200 per year for 5 years at 5% c. $400 per year for 5 years at 0% d. Now rework parts a, b, and cassuming that payments are made at the beginning of each year, that is, they are annulties due. Problem 2: Uneven Cash Flow Stream Year a. Find the present values of the following cash flow streams. The appropriate interest rate is 8% Cash Stream A Cash Stream BHI 1 $100 $300 2 400 3 400 ADO 4 400 400 5 300 100 400 b. What is the value of each cash flow stream at one interest rate? Year 1 2 3 4 5 Cash Stream A Cash Stream B $100 $300 400 400 400 400 400 300 100 400 Problem 3: Net Present Value and Internal Rate of Return Middleton company is considering two investment projects, each of which requires an up front expenditure of $15 million. The company estimates that the investments will produce the following next cash flows and wants to decide which project to select: Project Project $5,000,000 $20,000,000 10,000,000 20,000,000 5,000,000 Year 1 2 3 10,000,000 a. What are the two projects' net present values, assuming the cost of capital is 5% 10% 15%? b. What are the two projects Internal Rate of Return (IRR) at these same costs of capital? 4. Which project should the company select and why