Q1: What is the present value of $800 to be received at the end of eight years, assuming the following annual interest rate? 1. 4 percent, discounted annually 2. 8 percent, discounted annually 3. 20 percent, discounted quarterly 4. O percent Q2: Mr. Jones bought a building for $60,000, payable on the following terms: a $10,000 down payment and 25 equal annual installment payments to include principal and interest of 10 percent per annum. Calculate the amount of the installment payments. How much of the first year's payment goes toward reducing the principal amount? Q3: The Sooner Equipment Company has total assets of $100 million of this total, $40 million was financed with common equity and $60 million with debt (both long term and short term). Its average accounts receivable balance is $20 million, and this represents an 80-day average collection period. Sooner believes it can reduce its average collection period from 80 to 60 days without affecting sales or the dollar amount of net income after taxes (currently $5 million). What will be the effect of this action on Sooner's return on investment and its return on stockholders' equity if the funds received by reducing the average collection period are used to buy back its common stock at book value? What impact will this action have on Sooner's debt ratio