Q10: SuperInvestor requires all her investments to grow at an r of at least 7.17 percent per year. She is offered a contract that will produce the cash flows shown below, in return for her payment of $8,000 today (at T=0). Assuming there is no possibility of bankruptcy or etc, should she make this investment? EOY Cash Flow 1 $ 2,480 2 0 3 3,920 4 2,170 A. Yes B. No

Q12: Medical Lessors, Inc (MLI) buys an x-ray machine for $200K. On the same day (EOY 0), the firm leases the machine to Radiology, Inc. (RI) for six years, via a six-year, uniform-payment, annuity-due contract with 10% interest. Payments are made annually. What is the amount of the uniform payment?