Time Value of Money Problems: 1) What is the present value of $100 you expect to receive in seven years at 6% annual interest? 2) The Weilers are saving up to buy a house. They have found the perfect bungalow for $300,000. They have to come up with a 20% down payment. Mrs. Weiler inherited and then invested $10,000 five years ago and Mr. Weiler sold his Ferrari and invested the $20,000 in net proceeds when they got married ten years ago. Their respective investments have been earning 10 percent annually. How much do they have available to purchase their dream house? 3) Silver Star Productions plans to spin off two of their other interests that no longer fit their corporate mission and to help raise money for future movie projects. They plan to sell Prop Products, Inc. two years from now for $10.3 million and then sell Hollywood Clothing five years from now for $50.7 million. If Silver Star's discount rate is an annual rate of 12%, what is the combined value of these divisions today? 4) What is the future value of $350 invested for five years at 9%? 5) Dr. Frazier Crane is interested in syndicating his radio talk show. With the help of his brother, Niles, Dr. Crane has estimated the following cash flows: $2,000 year 1, $3,000 each years 2-6, $5,000 each years 7-10, $2,000 each years 11-12, and $1,000 in year 13. The startup cost is $25,000 and the Crane Brothers' investment portfolio is currently earning an annual rate of 5%. Should Dr. Crane sign the syndication contract? 6) Chevon Washington won the lottery. She will receive equal payments of $50,000 per year for the next 20 years. If Chevon can earn a rate of return on any investments she makes of 4%, what is the present value of her winnings