Homework #2 - Ch. 5, 6, 7, 8 and 9 Total: 100 points. Late submission penalty is 20 points per day. Due Date: Check D2L Submission: Submit via D21. Dropbox. Show your calculations. Attach additional sheets if necessary. Submit a single word/pdf file. 10% penalty for submissions with multiple files (5pts) 1. You have a chance to buy an annuity that pays $85,000 at the beginning of each year for 50 years. You could earn 10.0% on your money in other investments with equal risk. What is the most you should pay for the annuity fi.e. PV)? (5pts) 2. You are offered a chance to buy (cash outflow) an asset for $200,000 that is expected to produce cash inflows of $100.000 at the end of Year 1, $77,000 at the end of Year 2, $52,000 at the end of Year 3, and $40,000 at the end of Year 4. What rate of return (IRR) would you earn if you bought this asset? (5pts) 3. Mrs. Sotomayor has $4.310,100 and wants to retire. She expects to live for another 12 years and to earn 4.0% on her invested funds. How much could she withdraw at the end of each of the next 15 years and still end up with $1,000,000 in the account