Week 5 (Textbook Challenge three) Time Value of Money (Chp 9) and Worth of Capital (Chp 11)1. Future Value and Annuity Funds Christy and Michael attempt to decide if they’ll come up with the money for to retire early in 15 years, at age 60. Their current belongings embody $250,000 in retirement plans and $100,000 in several investments. Collectively, they contribute $30,000 per 12 months to their retirement plans and one different $6,000 to completely different investments.a. If their belongings already of their retirement plans and completely different investments develop at 9 % per 12 months, how quite a bit money will they’ve as soon as they flip 60?b. After they retire, they’ll make investments their wealth additional conservatively and it will earn 6 % per 12 months. What can be the sum of cash that they will be able to withdraw yearly within the occasion that they depend on to remain for 30 years in retirement?2. Worth of Capital (WACC). Suppose your group has decided to utilize a divisional WACC technique to research initiatives. The company in the intervening time has 2 divisions, A and B, with betas for each division of zero.5 and 1.5, respectively. If all current and future initiatives shall be financed with half debt and half equity, and if the current worth of equity (based totally on a imply company beta of 1.zero and a gift risk-free cost of 5%) is 18% and the after-tax yield on the company’s bonds is 6%, what are the WACCs for divisions A and B?Hint: First Clear up for Market Risk Premium (MRP) using the avg company beta. MRP = (Km-Rf) Then plug this MRP into the other equations as wished to find out the subsequent:a. Division A WACC?b. Division B WACC?