Problem #1: Time Value of Money Compute the unknowns for each of the following independent questions. (1) How much does Ned Winslow have to contribute to his investment account at the end of each year in order to accumulate $95,400 by the end of year 7? Ned points annual contribution (2 points) target balance $95,400 interest rate 6.8% # years 7 (2) Alfred Hitchcock has $11,540 in his savings account today. He needs $14,270 six years from now. What interest rate does the bank need to pay to make this points annual interest rate (2 points) target balance $14,270 current balance $11,540 # years 6 (3) An engineer at the XYZ Company has identified a piece of equipment that will generate after tax labor savings of $644,500 at the end of each year for five points max purchase price (2 points) amoint of annuity $644,500 current wadlice 17:40 # years 6 (3) An engineer at the XYZ Company has identified a plece of equipment that will generate after tax labor savings of $644,500 at the end of each year for five points max purchase price (2 points) amoint of annuity $644,500 discount rate 11.5% # years 6 (4) An engineer at the XYZ Company has identified a piece of equipment that can be purchased for $1,250,500. The machine has an estimated useful life of four points annual labor savings (2 points) purchase price $1,250,500 discount rate 11.5% # years 4 (5) You have been asked to evaluate the project shown below on the basis of NPV, IRR, and payback. (6 points) discount rate 18.0% Period CF's 0 ($3,000) 1 $1,100 purchase price $1,250,500 discount rate 11.5% (5) # years 4 You have been asked to evaluate the project shown below on the basis of NPV, IRR, and payback. (6 points) discount rate 18.0% Period CF's 0 ($3,000) 1 $1,100 N $1,100 3 $1,100 4 $1,100 5 $1,100 points payback IRR NPV