2. (I point) A friend has asked for your help determining whether she should invest in a property. She tells you that the property will have annual cash flows of $12,0oo during the first two years and will increase by $2,000 every two years. She plans to keep the property for six years and then sell it for an expected price of $300,000. She has an annual discount rate of 8%, and the current market price for the property is $260,000. Calculate the NPV of this investment opportunity. Should your friend invest in this property? Would your answer change if the discount rate drops to 7% ? What should be the required discount rate to start investing in this property? (Round your answers to two decimals). 3. (I point) Patrick received a mortgage for a property he was interested in investing in for a while. The mortgage lasts thirty years with a 6.75% annual interest rate for a loan of $500,000. Calculate the interest and principal payments for the first six years of the mortgage. (Show your calculations). What will be the remaining principal balance at the end of the 17th and 27th years? (You only need to specify these two numbers). 4. (I point) You have an apartment for rent. One potential tenant has promised to sign an annual lease for eight years, with each year's rent (paid at the end of the year) of $32,000. Rather than make annual payments, a second tenant has offered to pay you an upfront single cash payment for the use of the apartment over the next eight years. If your discount rate is 9%, what minimum single cash payment would make you sign the lease with the second tenant