Section B: There are 3 questions in this section. Answer ONLY ONE question in the space provided below. Question 1 (Time Value of Money): 20 marks (a) Assume that you work for XYZ, a multinational company based in Ottawa that has operations in Asia. You manager wants you to compare the firm's performance to that of other Canadian multinationals with operations in Latin America using financial ratios. List and explain two limitations of such comparative analysis. (5 marks) b) (i) The R&M Bank has offered you a choice between two investment accounts: #1 pays interest at a rate of 12% compounded semi-annually. #2 pays interest at a rate of 11% compounded monthly. Which investment account would you prefer and why? (5 marks) (li) An insurance company promises to pay you $2,500 a year, at the beginning of every year, for four years. If the annual interest rate is 12%, annual compounding, how much should you pay for this insurance product? (5 marks) (iii) You have won a lottery worth $1,000,000. The amount will be paid to you in equal installments over 20 years. If the interest rate is 10% compounded annually, how much will you be paid at the end of every year