Kindly help me in solving this difficult assignment

A training company is planning to expand into another country. The set up costs (which are paid out at the start) are expected to be $50,000. Rent and salaries totalling $120,000 pa are to be paid monthly in arrears for the first two years. After two years, the total monthly payment for rent and salaries increases each month by $100. The expected sales of courses and materials during the first three years of business are shown in the table below: Year Total income from Total income from sales of materials sale of courses $40,000 $20,000 $ 120,000 $ 120,000 W N $ 140,000 $ 160,000 The income is to be payable monthly in advance but, in the first year, no income is received until the beginning of the 8th month. After the first three years, sales of both materials and courses are expected to grow at a rate of 0.5% per month compound. (i) Assuming that the business continues indefinitely, calculate the net present value of this project at an effective rate of interest of 8% pa. [7] (ii) Show that the discounted payback period for the project, at an effective rate of 8% pa, is less than 2 years. Hence calculate the discounted payback period. [5] (iii) Calculate the accumulated profit for this project after 5 years, using an annual effective rate of interest of 8% pa. [3] (iv) A year after setting up the project, it is sold. The original investors earned an effective annual rate of return of 9% pa. Calculate the sale price. [4] [Total 19]A company has just borrowed $100,000 at a fixed rate of 8% pa. The loan is to be repaid at par value in five years and interest must be paid at the end of each year. In order to reduce its exposure to fixed rate borrowing, it arranges an interest rate swap to exchange the 8% pa fixed rate for a variable rate that is 1%% higher than the central bank's base rate at the time when the interest payments are due. Over the next five years, the base rates turn out to be: (7/2%, 62%, 712%, 812%, 912%) (i) State the constant effective annual interest rate that would have been paid by the company if it had not arranged the swap. [1] (ii) Calculate the equivalent constant effective annual interest rate that has been paid by the company as a result of taking out the swap. [4] [Total 5](i) Describe the risk characteristics of a government-issued, conventional, fixed interest bond. [2] (ii) A particular government bond is structured as follows: Annual coupons are paid in arrears of 8% of the nominal value of the bond. After five years, a capital payment is made, equal to half of the nominal value of the bond. The capital is repaid at par. The repayment takes place immediately after the payment of the coupon due at the end of the fifth year. After the end of the fifth year, coupons are only paid on that part of the capital that has not been repaid. At the end of the tenth year, all the remaining capital is repaid. Calculate the purchase price of the bond per f100 nominal, at issue, to provide a purchaser with an effective net rate of return of 6% per annum. The purchaser pays tax at a rate of 30% on coupon payments only. [5] [Total 7]