Please answer a-d, needs to show workings no excel

organizational beh... Class 3- Diversity. EICS2014PUMF Employment Insur 1 2 125% Answer all questions The assignment is due by Monday 26 February 2018, NB: You will lose 10 marks for everyday the assignment is late. .Assignment should be submitted on Culearn (into the Assignment dropbox) uestion 1: Application of Time Value of Money (30 marks a) You have just joined the investment banking firm of Mckenzie & Co. They have offered you two different salbgy arrangements. You can have $75,000 per year for the next two years, or you can have $55,000 per year for the next two years, along with a $30,000 signing bonus today. If the interest rate is 12% compounded monthly, which is a better offer (10 marks) b) In 30 years, you plan to set up a fellowship fund for Carleton university that pays out $100,000/year in perpetuity with an annually compounded discount rate of 5% In order to set up the fund in 30 years, how much do you need to save each year (starting this year) assuming you can get a semi-annually compounded return of 10% per annum on your savings for the next 30 years? (5 marks) c) You have been hired to run a pension fund for Mackay Inc, a small manufacturing firm The firm currently has $5 million in the fund and expects to have cash inflows of S2 million a year for the first 5 years followed by cash outflows of S 3 million a year for the next 5 years. Assume that interest rates are at 8%. i. How much money will be left in the fund at the end of the tenth year? (10 marks) ii. If you were required to pay a perpetuity after the tenth year (starting in year 11 and going through infinity) out of the balance left in the pension fund, how much could you afford to pay? (5 marks) MacBook Air 2 3 4 5