EXERCISESYou got offered the chance of investing in vineyards. Until year 4 there will be no production and then it generates a cash flow of 20.000 € growing perpetually at a 3%. If the cost of opportunity for that business is 8%, how much you should pay for the vineyards?You are about to buy a garage in a building that will be finished in 4 years. Which of these is the best way to make the payment?a. 10.000 € now and 18.000 € when the building is finished.b. 5 annual payments of 5.800 € each, starting at thesigning of the contract.You have the chance of investing 1548 € generating a perpetuity of 138 €. If your cost of capital is 9 %, is a good investing opportunity?You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 annual installments. The first payment is next year. How much is the prize really worth? The discount rate is 8 percent.Harold Filbert is 30 years of age and his salary next year will be $20,000. Harold forecasts that his salary will increase at a steady rate of 5 percent per annum until his retirement at age 60.c. If the discount rate is 8 percent, what is the PV of these future salary payments?d. If Harold saves 5 percent of his salary each year and invests these savings at an interest rate of 8 percent, how much will he have saved by age 60?e. If Harold plans to spend these savings in even amounts over the subsequent 20 years, how much can he spend each year?