a)     Cash inflows expected from a project are RM28,000 for year 1, RM22,000 for year 2, RM20,000 for year 3, RM25,000 for year 4 and RM20,000 for year 5. Given the discount rate of 10%, what is the total present value of cash flow of this project?                                                             

 

b)     Melinda needs to accumulate RM50,000. In order to do so, she plans to save at the start of every year starting today for 10 years with an interest rate of 10% per annum. How much will she need to deposit every year to reach that amount?                                                                    

c)     You opened a saving account for your son 4 years ago and deposited RM500 at that time. Three years ago, you added another RM500 to the account. Last year, you deposited an additional RM300 into this account. With an interest rate of 5% compounded annually, how much is in the account today?                                                                                                                (3

d)     Syafik borrowed RM150,000 from ABC Bank for 5 years at an interest rate of 12% compounded monthly. How much is his monthly loan payment?              

Answer rating: 100% (QA)

a To calculate the total present value of cash flow for the project we need to discount each cash inflow back to the present value using the discount ... View the full answer