Question: Question 3: PLease, write the answer in Word format with Formulae written. John has won a lucky draw. He is deciding whether to receive the

Question 3:

PLease, write the answer in Word format with Formulae written.

  1. John has won a lucky draw. He is deciding whether to receive the prize money of 30,000 today or the following set of cash flows over the next three years with benefit of 10% interest. Advise what is beneficial for John.

Year Cash flow

1 11000

2 12100

3 13310

36410

  1. What is cash flow analysis? Why is it important to prepare a cash flow statement for an organization?

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