NB Answer computer plz with Answer 1 and Answer 2

INSTRUCTIONS: Answer ALL questions. PART A: ANSWER ALL QUESTIONS (100%) -30% of Total Assessment QUESTION 1 (20 MARKS) A. Suppose you purchase a house for $200,000.00 by getting a mortgage for $180,000.00 and paying a $20,000.00 down payment. (i). If you get a 30-year mortgage with a 7% interest rate p.a. compounded quarterly, what are the quarterly payments? (5 marks) (ii). What would the loan balance be at the end of the first year? (5 marks) B. You inherited an annuity from a rich uncle of $12,500 every 2.5 years beginning 17 weeks from today for a total of 8 payments. Assume a rate of 8% compounded quarterly. What is the equivalent value of the annuity today? (Hint: 1 year = 52 weeks) (10 marks) (TOTAL:20 MARKS] QUESTION 2 (30 MARKS) A. The Erickson Toy Corporation currently uses an injection moulding machine that was purchased 2 years ago. This machine is being depreciated on a straight-line basis toward a $500 salvage value, and it has 6 years of remaining life. Its current book value is $2,600, and it can be sold for $3,000 at this time. Assume, for ease of calculation, that the annual depreciation expense is $350 per year. The firm is offered a replacement machine which has a cost of $8,000 an estimated useful life of 6 years, and an estimated salvage value of $800. This machine falls into the MACRS 5-year class (20%, 32%, 19%, 12%, 12%, 5%). The replacement machine would permit an output expansion, so sales would rise by $1,000 per year; even so, the new machine much greater efficiency would still cause operating expenses to decline by $1,500 per year. The machine would require that inventories be increased by $2,000 but accounts payable would simultaneously increase by $500. The firm's marginal federal-plus-state tax rate is 40 percent, and its cost of capital is 15 percent. Should it replace the old machine? (In your calculations use zero decimal spaces/round to the whole numbers). (20 marks) B. Discuss the potential sources of long-term finance available to a large company. (10 marks) [TOTAL: 30 MARKS] QUESTION 3 (40 MARKS) You have been asked by your CEO to evaluate, analyse and calculate commonly used ratios relating 11