Assume Angela graduated last year from UTS with a business degree and that she  applied for a job with Citibank. As part of the bank's evaluation process, she has been asked to take an examination that covers several financial analysis techniques. 

Answering the following questions. 

A. Samantha needs $100,000 as a deposit on a house in 8 years. How much does she need to invest today in a saving account paying 2 per cent per annum? 

B. Tania is buying a car for $65,500; She is Scheduled to make 7 annual instalments. Given an interest rate of 8%, what is the annual payment? 

C. The Golden Resort is redoing its Bistro restaurant at a cost of $3,500,000. It expects to generate cash flows of $1,250,000, $2,200,000, and $3,800,000 over the next three years. If the appropriate discount rate for the company is 10 percent.

What is the NPV of this project?

Answer rating: 100% (QA)

A To calculate how much Samantha needs to invest today we can use the present value formula Present ... View the full answer