QUESTIONS 1) What do you think about the time value of money? Why it is so important? (50p) Use your own words and explain your reason? (20p) 2) There are two cash flow diagrams below and there are four cash flow amounts in total. We have 10 years duration and interest is compounded annually. According to Engineering Economics principles which cash flow amount (P1, P2, F1, or F2) has the highest economic effect?(10p) Use your own words and explain your reason(20p) P1=$1000 I- ++ 2 0 1 9 10 i = 10% FI=$2500 P2=S2500 II- 2 9 0 101 i=19 FP#$1000