Question 1 A company wants to invest in new machinery. What will the PV (present value) of the machinery be? Given that Life expectancy of machinery= 7 years. Cost of machine=Lum sum of $230,000 or the other option is that you can lease it from the company that manufactures it for seven years. The monthly payments will be $2500. To get the machine, the company can get a loan that has an APR=6% and it will be compounded quarterly. Question 2 How can investment be increased by lowering interest rate? What mechanism is used? Question 3 What is the difference between the cash flows of a coupon bond and the cash flows of a zero coupon bond