Appiled corporate Finance Problems to be solved Chapter 4 1. Hamad will receive the following payments at the end of the next three years: AED 40,000, AED 50,000, and AED 65,000. Then from the end of the thrid year through the end of the tenth year, he will receive an annuity of AED 30,000. At a discount rate of 6 percent, what is the present value of all future cash flows? 2. Find the future value of AED 10,000 per month (at the beginning of the month) for six years at 10 percent. At the end of 6 years you take the proceeds and invest them for 9 years at 12 percent. How much will you have after 15 years? 3.Determine the amount of money in a savings account at the end of 5 years, given an initial deposit of AED 40,000 and 8 percent annual interest rate when interest is compounded (a) annually, (b) semiannually, and (c) quarterly. 4. Ahlam borrows AED 3,000,000 to be repaid over 6 years at 8 percent. What is the repayment of principal in the first three years and the total interest to be paid. 5. You invest a single amount of AED 30000 for 10 years at 7 percent. At the end of 10 years you take the proceeds and invest them for 8 years at 9 percent. How much will you have after 18 years