7. A father invests funds for his child who is 8 years old every year to be able to cover his studies once his son turns 21 years. He will invest N$21,000 every year, assuming he can earn 15% annual interest for both annuities. Help him to choose between two annuities where Annuity A is annuity due, and Annuity B is an ordinary annuity. Calculate the values of this study policy annuities at the end of the investment period and suggest the one that you would he prefer? Support your suggestion. (10 marks) 8. Calculate the rate of return earned over a specified period of time. Explain the outcome based on what was seen in the market value, impact of cash flow and changes in value. What is the preferred investment? (5 marks) Investment Cash flow during the period(N$) Beginning of the period value(N$) End-of-period value(N$) 8.1. Sungsan 20,000 140,000 113,000 8.2. Aikon 50 600 450 8.3. Allamoto 13,000 45,000 50,000 8.4. Sensu 4,000 9,000 12,400 8.5. Eclipse 600 1,000 5,000 10. Below are forecasted returns for three financial assets to assist in determining risk of this investment portfolio. (9 marks) Year TREASURY BILLS DERIVATIVES SHARES 2022 14 19 8 2023 20 18 9 2024 8 17 10 2025 10 16 11 2026 5 15 12 2027 12. 14 13 10.1 What is the expected return if you invest in treasury bills, derivatives and shares individually? (3marks) 10.2 Compute the risk for investing in a portfolio of shares (100%), treasury bills (100%) and derivatives (100%)? (6 marks) 6. IMH investment company, a retailer in the construction industry expects a mixed stream of cash flows received at the end of the year, over a 6-year period from two of its customers to be paid at the end of the period. If IMH investment earns a return of 9.5% semi-annually on investment, what is the value of cash flows accumulated at the end of the 6-year period? (19 marks) End of Cash flow year N$ 2,000.00 2000 N$ 30,000.00 2001 N$ 14,000.00 2002 N$ 6000.00 2003 N$50000.00 2004 N$12900.00 2005