Question

2) Please solve for each of the following problems ley Production Corp. estimates that it needs $5,250,000.00 to replace one of its factories rs. The company is quoted a rate of 7 1/2% per year as the typical investment return for in 25 yea similar projects over this time frame. How much must be invested b to secure adequate funding for this factory? (8 points). B) If Henley paid after year S $1,650 y Henley Production today were provided with an alternate form of financing where $1,900,000.00 must be r 1, S1,700,000.000 would have to be paid after year 15 and the remaining 00.00 was required at the time of construction, 25 years from now, how much will the alue of this investment be toay? When Compared with the previous alternative, which terms are more attractive to Henley Production and why? (12 points). lenny Thomas holds an annuity that is paying her a total of $2,500.00 per year over a period rs. If the interest rate payable on this annuity is 6 1/4%, what is the value of this annuity? (10 points).