14, 18, 22, 24, 26 please

4. Present Values. What is the present value of the following cash-flow stream if the interest rate is 6%?(LO52) 18. Present Values. A factory costs $400,000. You forecast that it will produce cash inflows of $120,000 in year 1,$180,000 in year 2, and $300,000 in year 3 . The discount rate is 12%. ( () LO5-2) a. What is the value of the factory? b. Is the factory a good investment? 19. Present Values. The two-year discount factor is .92. What is the present value of $1 to be received in year 2 ? What is the present value of $2,000 ? ( LO5-2) 20. Annuities. A famous quarterback just signed a $15 million contract providing $3 million a year for five years. A less famous receiver signed a \$14 million five-year contract providing $4 million now and $2 million a year for five years. The interest rate is 10%. Who is better paid? ( LO5-3) 21. Annuities. Would you rather receive $1,000a year for 10 years or $800 a year for 15 years if the interest rate is 5% ? What if the interest rate is 20\%? ( LO5-3) 22. Perpetuities. A local bank advertises the following deal: "Pay us $100 a year for 10 years and then we will pay you (or your beneficiaries) $100 a year forever." Is this a good deal if the interest rate is 6% ? ( LO5-3) 24. Perpetuities. A property will provide $10,000 a year forever. If its value is $125,000, what must be the discount rate? ( LO5-3) 25. Perpetuities. British government 4% perpetuities once paid 4 interest each year forever. Another bond, 2.5% perpetuities, paid 2.50 a year forever. ( LO5-3) a. What was the value of 4% perpetuities if the long-term interest rate was 6% ? b. What was the value of 2.5% perpetuities? 26. Annuities. ( LO5-3) a. What is the present value of a three-year annuity of $100 if the discount rate is 6% ? b. What is the present value of the annuity in part (a) if you have to wait two years instead of one year for the first payment