(a) When you first started University, you also won a lottery prize of 10,000 and decided to invest it, to buy a car when you graduate, three years later. You were able to deposit your money in a high-performance savings account that pays an annual interest rate of 6%. Calculate:

i) How much interest you will earn for the three years, if you were earning simple interest.

ii) How much interest you will earn for the three years, if you were earning quarterly compounded interest.

iii) How much will your investment be worth when you graduate, if the interest was compounded monthly for the three-year period.

Another company is considering two investment projects that have the following cash flows: i) ii) Year 0 1 2 3 Project X -250 150 125 200 Project Y -300 450 If the company's discount rate is 12%, which project should be chosen and why? What is the internal rate of return (IRR) from Project Y