Question: QUESTION 4. Answer briefly the following questions: *) Write down the equation for the Present Value of 4000E to be received 4 years later if

QUESTION 4. Answer briefly the following questions: *) Write down the

QUESTION 4. Answer briefly the following questions: *) Write down the equation for the Present Value of 4000E to be received 4 years later if the market interest rate is forecast as 15% for the next 4 years. (5 Points) b) What is the relationship between Future Value Factor and Future Value of an Annuity Factor? (5 Points) c) Write the formula of the Price to Book Valuu Ratw and explain how a result of 2 should be interpreted. (5 Points) d) Deline cost of borrowing. (5 Points)

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