Dunolly Lollies requires short-term finance today for a period of 200 days and has arranged a 90-day bank bill facility with CanWest Bank. The bill has a $5million face value. Dunolly Lollies will roll over the bank bill into a second bank bill after 90 days. The current 90-day bank bill rate is 4% pa and the 110-day bank bill rate in 90 daysis 3% pa.

a) What are the cash inflows for Dunolly today? (5%)

b) What are the cash flows for Dunolly after 90 days? (3%)

c) What are the cash outflows for Dunolly after 200days? (2%)