Each question carries 5 points. Please submit an excel file with each question as a separate worksheet and work out the problems in detail to get partial credit. If you provide only the answers without showing your work, I will not be able to provide any credit if your answer is wrong. Your exam will NOT be graded if you submit the exam in a word file. 1. La Fonda Restaurants have an extra cash of $ 25,000. They have two investment options that will earn interest either at the rate of 10% compounded semiannually or 9.5% compounded quarterly. Which would you advise? 2. Your company's philanthropy initiative invested $ 50,000 in an account earning 7% per annum interest. The initiative added $ 30,000 to the account at the end of fifth year. How much money will the initiative have at the end of ten years from these investments? 3. A company is planning a 50 mio expansion. The expansion is to be financed by selling 20 mio in new debt and 30 mio in new common stock. The equity investors are expecting a 14% return. Before tax required return on debt is 9%. If the company is in the 40% tax bracket, the company's marginal cost of capital is: 4. Petrus has an opportunity to make two investments, but he can only afford to make one of them. Each one costs $ 25,000,000. The first investment can be sold in 14 years for $ 98,500,000 and has no periodic cash flow. The second investment has a $ 200,000 per month cash flow for 6 years followed by a cash flow of $ 400,000 per month for 8 years. The second investment has no resale value. Which investment is better, from the standpoint of IRR? 5. A monthly amortizing, 30-year fixed-rate hotel mortgage for $100 mi was issued 10 years ago at 2%, Market rates for such mortgages today has increased to 5%. How much will you pay to buy this mortgage today? 6. Mr. X bought a house for $293,000. He put 20% down and obtained a fully amortized monthly loan for the balance at 5.75% interest for 30 years. a. Find the amount of X's monthly payment. b lind the total interest paid by X