Question 1 An agent plans to save $1000 today and at the end of each of the next ten years. At a fixed 10% interest rate, how much will he have in the bank ten years from today? Question 2 If an agent saves $1000 today and at the end of the next few years. In how many years this agent could get a saving at $20000. Savings deposited at 8%. Question 3 ABC needs moncy to buy a new car. His friend accepts to lend him the money so long as he agrees to pay him back within five years and he charges 7% as interest (compounded interest rate). a) ABC thinks that he will be able to pay him $5000 at the end of the first year, and then $8000 each year for the next four years. How much can ABC borrow from his friend at initial time. b) ABC thinks that he will be able to pay him $5000 at the end of the first year. Estimating that his salary will increase through and will be able to pay back more money (paid money growing at a rate of 0.75 ). How much can ABC borrow from his friend at initial time. Question 4 ABC firm plans to buy a new machine for $500,000. The seller requires that the firm pays 20% of the purchase price as a down payment, but is willing to finance the remainder by offering a 48 -month loan with equal monthly payments and an interest rate of 0.5% per month. What is the monthly loan payment? Question 5 Consider the following mutually exclusive projects: a) Present with details the IRR: what does it represents, how is it determined and used to select a project and it drawbacks. b) Determine the NPV of each project as well as the payback periods. c) Based on your response in question 5 b) which project should be selected. Question 6 Jessica has decided to go into business for herself. She estimates that her business will require an initial investment of $1 million. After that, it will generate a cash flow of $100,000 at the end of one year, and this amount will grow by 4% per year thereafter. What is the Net Present Value (NPV) of this investment opportunity? Should Jessica undertake this investment