QUESTION 1

PLEASE DO IT ON A PAPER, I WILL APPRECIATE A CLEAR AND EXPLAINED ANSWER, THANK YOU.

a) Find the future values for the following investments: RM11,500 at 8% compounded quarterly for 2 years. (3 marks) b) (3 marks) C) Find the effective rate that is equivalent to 16% compounded quarterly. $18000 is invested for 7 years 3 months. This investment is offered 8% compounded monthly for the first 4 years and 8% compounded quarterly for the rest of the period. Calculate the future value of this investment. (6 marks) d) ALMOND Company is considering two important proposals with the following cash flows. Project A Project B Period (Year) Cost (Initial Net cash flow Cost (Initial Outlay) Net cash flow Outlay) $45,000 0 $60,000 1 $25,000 $24,000 2 $20,000 $25,000 3 $15,000 $30,000 For each project, compute its net present value using a discount rate of 15%. Which project should be accepted if the projects are mutually exclusive? (10 marks)