Problem 1. You are selling a product on commission at the rate of S1,000 per sale. To date, you have spent $800 promoting a particular prospective sale. You are confident you can complete this sale with an added expenditure of some undetermined amount. What is the maximum amount, over and above what you have already spent, that yinu should be willing to spend to assure the sale? Problem 2. You are looking to purchase a new luxury Dsports car at a price of \$93,500. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,300 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 5%. What will be the amount of the balloon payment six years from now? Problem 3. Despite having a promising product, Vesper Systems is having difficulty generating profits. Having raised $85 million in an initial public offering of its stock early in the year, the company is poised to introduce a new product. If Vesper engages in a promotional campaign costing $55 million this year, its annual after-tax cash flow over the next five years will only be \$1 million. If it does no undertake the campaign, it expects its after-tax cash flow to be $15 million annually for the same period. Assuming the company has decided to stay in its chosen business, is this campaign worthwhile when the discount rate is 8%. Why or why not