Question: ) As a rational individual, will you be indifferent to receiving cash flows from the following two projects? Briefly explain by using time value of

) As a rational individual, will you be indifferent to receiving cash flows from the following two projects? Briefly explain by using time value of money and opportunity cost concepts.

Project a year 1: $7000

Project b year 2: $7000

b) What is the futurevalue of a cash flow of $100,000 to be received in five years given an interest rate of 5% p.a. over five years

(i) compounded quarterlyand

ii) compoundedmonthly?

Explain the difference between (i) and (ii). What have youlearned from this?

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