Question 5 & 6

Question 5 (Mandatory) (12 points) MULTIPLE CASH FLOWS: My friend Anne is planning to remodel her home. The remodel will require an expenditure of $10,000 one year from now, an expenditure of $8,000 two years from now and an exkenditure of $5,000 three years from now. Her ex-husband has agreed to finance the remodeling by investing a lump sum amount today. How large must the amount be if the ex- can earn 7% on his investments? (14 points) a $ 21,843.83 b. $ 20,414.79 c. $ 23,000.00 O d. $ 26,243.16 Question 6 (Mandatory) (5 points) Shareholder wealth is measured by the -.(5 points) O a. book value of the shareholders' common stock holdings O b. book value of the company's assets O c. market value of the company's assets. d. market value of the shareholder's common stock holdings astion 7 (Mandatory) (8 points)