Question 4: Solve the following problems :- (14.5 points) 1. You were given the cash flows for two investment (A,B), choose the best investment by Calculating the present value for each one, assuming a 10% discount rate. (4 points) End of Year Investment A Investment B 1 300 2 300 350 3 300 350 4 350 5 2- Suppose a firm wants to purchase a piece of machinery. To do this it borrows 150,000 to be repaid in 3 equals payments at the end of each year. The interest rate that is paid to the lender is 15% on the outstanding portion of the loan Calculate the loan balance after the payment of each annuity by using the loan amortization schedule. (4 Points) 3. An investor wants to earn 200,000 in 10 years by making equal semi-annual deposits at the beginning of each. The bank will pay an interest of 10 percent annually. What must the semi-annual deposit be? (2 point) 4.. What is the agency problem, and why does it occur? (2 point) 5. Discussed the Different Between Limited Liability Corporations and S-Type Corporations? (2.5 points)