7. Explain what a Profit and Loss Statement and a Balance Sheet are. (6 pts.) 8. An initial sum of $10,000 is invested in a bond. The face value of the bond is $12,000. You receive payments of $500 annually for 10 years. What is the worth of the bond if you were to sell it at year 5 (after you have received the coupon payment for year five) assuming the time value of money at year five is 6% per year? Show your calculations and final answer. (8 pts.) 9. Your company is buying a new patent from a small company for $1 million dollars. You expect to make a profit of $150,000 per year from the use of the patent. After 10 years you will sell the patent and expect to see a revenue of $475,000 from the sale. a. What is the annual internal rate of return for this investment? Show cash flow, equations and final answer. (6 pts.) b. Given a MARR of 12% is this investment something the company will do? Why or why not? (4 pts.)