Please provide a detailed response. #2 You receive a phone proposal to invest in a new business. The caller informs you that it will take a $70,000 down payment and the investment will earn $10,000 a...

Please provide a detailed response.

#2 You receive a phone proposal to invest in a new business. The caller informs you that it will take a $70,000 down payment and the investment will earn $10,000 a year for the next 10 years.  He tells you that the investment will return 14 percent.

a) If current interest rates are 8 percent, what is the present value of the investment? (Please provide in excel with explanation of the math)

b) How did the caller get 14 percent?