Question: Question 4 (6 points) THN Inc. just signed a sales contract with a new customer. THN will receive annual payments in the amount of $320,000,

 Question 4 (6 points) THN Inc. just signed a sales contract

Question 4 (6 points) THN Inc. just signed a sales contract with a new customer. THN will receive annual payments in the amount of $320,000, $440,000, $630,000, and $825,000 at the end of Years 1 through 4, respectively. What is this contract worth at the end of Year 4 assuming a 6% interest rate? Question 5 (7 points) You would like to buy a new car and can afford a monthly payment of $300. The current monthly financing rate is 2.9% and the loan period is 7 years. If you plan to make a $4,000 down payment, what is the maximum price of the car that you can afford? Question 6 (7 points) Mandlebaum, Inc. has identified an investment project with the following cash flows: Year 1 - $325,000; Year 2 - $755,000; Year 3 = $1,275,000; and Year 4 = $1,850,000. What is the value of these cash flows at the end of Year 4 assuming a 4% interest rate? A) What is the value at an interest rate of 8%? A

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