1a. Tom Jones is a software engineer and developed a new software which can be used for networking. Network Inc. wants to incorporate Joness software into its networking systems and offered $575,000 today, plus $550,000 at the end of each of the following seven years for permission to do this. If the appropriate interest rate is 7.5 percent, what is the present value of the cash flow stream that Network Inc. is offering to Jones? SHOW ALL WORK!

1b. Jones then borrowed $10,000 to buy a used car from First National Bank for five years. The bank is charging an APR (Annual Percentage Rate) of 12%. What is his monthly payment? SHOW ALL WORK

1c. Jones is planning a major capital expansion project worth $1 billion and will finance it by borrowing money for five years. Three major banks in the US have submitted interest rate quotes as follows; all are APRs:

First National Bank of North Texas: 10.40 percent compounded monthly

Tennessee Development Bank: 10.90 percent compounded annually

Idaho Finance Inc: 10.50 percent compounded quarterly

Which lender offers the lowest interest rate?

Please show work for all answers. Thank you!