q1: X1=7000$ , X2=17%

q2: X1=5% , X2=900$

q3: X1=140000$ , X2=8%

q4: X1=140$ , X2=3%

Question (1): Three months ago, Jim purchased SXI of U.S. Treasury bonds. These bonds have a 30-year maturity period, and they pay dividends every three months at an APR of 2% However, today's interest rates for similar securities have risen to a (x2+1y%APR (compounded quarterly). In view of the interest-rate increase to (x2+1)%, what is the current value of Jim's bonds today? Question (2): What is the capitalized worth, when i = x1% per year, of SX2 per year, starting now and continuing forever, and S1OX2 in year five, repeating every four years thereafter, and continuing forever? Question (3): The IPS company has installed a system to help reduce the number of defective products. The capital investment in the system is SX1, and the projected annual savings are tabled below. The system's market value at the EOY five is negligible, and the MARR is x2% per year EOY Savings 25,000 30,000 35.000 40,000 46,000 a. What is the FW of this investment Based on economical decision rule, is this a good investment? b. What is the IRR of the system? Based on economical decision rule, is this a good investment? c. What is the discounted payback period for this investment? 1 2 3 4 Question(4): A power plant is being considered in the dead sea location. For an initial investment of SX1 million annual net revenues are estimated to be $15 million in years 1-5 and $20 million in years 6-20. Assume no residual market value for the plant. a. What is the simple payback period for the plant? b. What is the discounted payback period when the MARR is x2% per year? c. Using an equivalency technique (FW, PW, or AW), MARR is x 2% per year, would you recommend investing in this project