Answer:
First of all, you must invest enough money in B in order to pay your debt.
present value = future value / expected return
present value = $24,000 / $1.36 = $17,647.06
you have $90,000 - $17,647.06 = $72,352.94 to invest in A.
at the end of year 2, you will have:
future value = present value x expected return = $72,352.94 x $1.20 = $86,823.53
then you should invest that money ($86,823.53) in invested D and at the end of year 4 you will have:
future value = $86,823.53 x $1.66 = $144,127.06
finally, you should invest $144,127.06 in investment E and at the end of ear 5 you will have:
future value = $144,127.06 x $1.12 = $161,422.31
2) it is really hard to draw a diagram without drawing tools, but i will try
⇒ invest $17,647.06 in B ⇒ year 3, collect $24,000
from B and pay off debt
today
$90,000
⇒ invest $72,352.94 ⇒ year 2, invest ⇒ year 4, invest
in A $86,823.53 in D $144,127.06 in E
continues ... ⇒ year 5, collect $161,422.31 from E
