Question 4 (3 points) A $100,000 mortgage loan has a 25-year amortization period and a 5-year mortgage term. Calculate the monthly payment of the mortgage term assuming an interest rate of 4% compounded semi-annually. Question 5 (5 points) The development of a new product will require two expenditures of $125,000 today and another $125,000 one year from now. When the product reaches the market in Year 3, it is expected to increase the firm's annual profit by $50,000 for eight years. Then at the end of the project, $75,000 of the original expenditure will be recoverable, e.g. salvage. The firm's cost of capital is 12% and its "payback hurdle rate" is 5 years. What is the Net Present Value and Payback Period for the project? (Hint that would not show up in the exam: careful with the cash flows. There is one year where cash flow = 0.)