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4. We save an amount of 100 USD every of next three years where the interest rate is 10 % p.a. Calculate the future value

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4. We save an amount of 100 USD every of next three years where the interest rate is 10 % p.a. Calculate the future value of this savings where the frequency of compounding is as follows: WED], FVIPT' FVW, Wm, Win 5. The company would like to buy a machine for 10 mil. USD. The machine would be depreciated for 3 years using the straight-line method. Company has the following options: Loan: maturity 3 years, interest 5 % p.a., equal annuity payment Leasing: leasing coefcient 1.3; advanced payment 30 %; maturity 5 years; annual payment The corporate tax rate is 20 %. 6. An investment project is expected to generate $ 20 million in revenues next year, growing by 3% forever. Expenses are expected to remain unchanged at 18 million forever. What is the value of the project if it is required return is 10 96? 7. We consider the following cash ows which are in the table below, interest rate 5 % p.a. Frequency of compounding is twice a year. Calculate PV, WE. , FVH F'Vm Years 1 2 3 4 Cash flows 100 0 150 200

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