The owner of a business expects to make a net profit of $21,000 in the end of each year over the next five years and to be able to sell the business at the end of the fifth year for $120,000. The owner of the business also believes that the appropriate annual discount rate is 7%. Calculate the (present) value of the business.

B) A small company received a $80,000 loan at a 7% annual interest rate and the loan must be repaid in 6 equal end-of-year installments. Calculate the amount of the yearly payment.