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1) What is an amortised loan? Describe it in contrast to other types of loans. Why is the amortised loan an appropriate loan for residential

1) What is an amortised loan? Describe it in contrast to other types of loans. Why is the amortised loan an appropriate loan for residential mortgages? Explain. [10 marks] 2) Discuss what are the relevant cash flows that must be included in the Net Present Value calculations in capital budgeting. What cash flows should be excluded? Explain. [10 marks]

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