A=19100379 B=30

Question 1 (Total: 6 marks) A company has invested RM A into a fund at the time t=0, followed by yearly contribution, made at the end of the year, with an increase of RM 100,000 each year from Year 1 through Year 8 and the contributions remain thereafter. In addition to that, the company incurs maintenance expenses of RM 20,000 into the fund through Year 8 to Year 12. It is expected that the investment return will be RM 24 through Year 10 to Year B. After Year B, the fund will be terminated. (a) (b) (c) Calculate the net present value of this investment at effective interest rate of 10% per annum. (2 marks) (2 marks) (2 marks) Calculate the internal rate of return (IRR) on this investment. If the internal rate of return is 3% per annum, find the value of A