1. You are visiting New Orleans when another hurricane hits, causing Lake Pontchartrain to overflow the levies and flood the city again. Your car, which contains your laptop, is damaged in the flooding. It costs $7500 to repair your car. Your laptop, valued at $900, is damaged beyond repair. Your policy will pay:
A. 0
B. $7,500
C. $8,400
D. $8,300
E. None of the above.
2. A movie is expected to produce cash flows of 16,600 dollars per month with the first monthly cash flow expected later today and the last monthly cash flow expected in 6 months from today. The cost of capital for the movie is 22.2 percent per year. What is the value of the movie?
Please show your work