$3,000 at the end of each year for seven years at a 15 percent annual rate. Wharton will not make the first $3,000 payment until 4 years from now. 178 Part 2 Use, Measurement, and Mechanics of Financial. Statements P4-15 (Appendix 4A: Computing present value and equivalent value of contract cash flows) P4-16 (Appendix 4A: The highest present value?) P4—1 7 (Appendix 4A: Computing equivalent values) P4-18 (Appendix 4A: Present andfuture values) P4-19 (Appendix 4A: Present value ofa note receivable and inferring the effective interest rate) REQUIRED:

a. How much money will Wharton have at the end of ten years?

b. How much would Wharton have to invest in a lump sum today to have an equivalent amount at the end of ten years, given a 12 percent annual rate of return?