Answer the questions below.    Make sure to bold key words (150 minimum) for each concept question and also bold answers...

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Answer the questions below.
·       Make sure to bold key words (150 minimum) for each concept question and also bold answers for problems.
·       Key words and concepts attached in PDF files with this assignment.
Answer questions: 
·       Chapter 9:
9.8 concept (page 323)
What are three techniques for solving time value problems?
 
 
 9.6 problem (page 324) Consider the following uneven cash flow stream:
 
 Year Cash Flow
YearCash Flow
0$0
1250
2400
3500
4600
5600
 
 a.  What is the present (Year 0) value if the opportunity cost (discount) rate is 10 percent?
 
 b.  Add an outflow (or cost) of $1,000 at Year 0. What is the present value (or net present value) of the stream?
 
 
·       Chapter 10:
10.3 concept (page 363)
a. What is risk aversion?
 
b. Why is risk aversion so important to financial decision making?
 
 
10.2 problem (page 364)
Suppose that a person won the Florida lottery and was offered a choice of two prizes: (1) $500,000 or (2) a coin-toss gamble in which he or she would get $1 million for heads and zero for tails.
 a. What is the expected dollar return on the gamble?
 
 b. Would the person choose the sure $500,000 or the gamble?
 
 c.  If she chooses the sure $500,000, is the person a risk averter or a risk seeker?
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