Question
A company has a cash- inflow streams from Year 1 to 3 totaling GH30,000. Management of the company has provided you with the below information
A company has a cash- inflow streams from Year 1 to 3 totaling GH30,000. Management of the company has provided you with the below information to assist them in choosing the best cash inflow streams. Streams Year 1 Year 2 Year 3 Total A GH 2,500 GH 7,500 GH 20,000 GH30,000 B GH 10,000 GH 10,000 GH 10,000 GH30,000 C GH 20,000 GH7,500 GH 2,500 GH30,000 D GH 2,500 GH 20,000 GH 7,500 GH30,000 Required Assuming the interest rate is greater than Zero. Which of the following cash-inflow streams would you recommend for the company and why? (14 marks) b. In-charge bank pays 9%, compounded daily (based on 360 days), on a 8-month certificate of deposit. Assume there is 30days in each month. Required How much would you take home at the end of the period, if you deposit GH7,500 (6 marks) c. You have been offered an investment that will pay you 9% per annum. If you invest GH15,000, how long will it take you to accumulate GH30,000.
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