Question$1.$ I$-$SEE$-$U Inc., a maker of CCTV cameras, is considering a hardware

marketing chain to sell its cameras. As per the deal,I$-$SEE$-$U will be

paid $$35,000$ and $$10,000$ at the end of years $1$ and $2$ and to make

annual year$-$end payments of $$5,000$ in years $3$ through $9.$ A final

payment of $$20,000$ would be due at the end of year $10.$

A second company has offered to market the cameras for a one$-$time

payment of $$80,000$ right away.

If I$-$SEE$-$U uses a $12\%$ required return, Which offer should it accept?

Support your asnwer with relavent calculations. Question $2.$ You have decided to endow your favorite university with a scholarship.

It is expected to cost $$15,000$ per year to attend the university into

perpetuity. You expect to give the university the endowment in $5$ years

and will accumulate it by making equal annual $($end$-$of$-$year$)$ deposits

into an account.

The rate of interest is expected to be $8\%$ for all future time periods.

a$)$ How large must the endowment be$?$

b$)$ How much must you deposit at the end of each of the next $5$ years

to accumulate the required amount?