BUSINESS FINANCE ASSIGNMENT Question One a) Consider a 20year project with the following portion of cash flows. Cash flows 4,000 p.a. 5,000 p.a. Years 1-6 years 7-10 years 11-17 years 8,000p.a. 18-20 years 12,000 p.a. Suppose the cost of capital is 12%. The annuity between years 11-14 is received at the beginning of each period. Calculate the present value of the differential annuity. (10mks) b) What economic advantages are created by the existence of i) Primary markets (5mks) ii) Secondary markets. (5mks)