[1] Assuming a $4,000 initial deposit, find the effective interest rate per quarter at a nominal rate of 8%, compounded continuously. Also find the balance at the end of 3 years under such a compounding rate. (20%) [2] Consider the following project's cash flows: Year Project's Cash Flow ($) 0 -$10,000 1 3,000 2 4,000 3 2,500 4 1,500 5 2,500 6 1,500 (a) What is the conventional payback period of the project? (5%) (b) Assuming i = 10%, calculate the discounted payback period for the project. (10%) [1] Assuming a $4,000 initial deposit, find the effective interest rate per quarter at a nominal rate of 8%, compounded continuously. Also find the balance at the end of 3 years under such a compounding rate. (20%) [2] Consider the following project's cash flows: Year Project's Cash Flow ($) 0 -$10,000 1 3,000 2 4,000 3 2,500 4 1,500 5 2,500 6 1,500 (a) What is the conventional payback period of the project? (5%) (b) Assuming i = 10%, calculate the discounted payback period for the project. (10%)