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Company MOMOS that installs inventory control systems by using RFID technology spent some amount of money per year for the past two years in developing
Company MOMOS that installs inventory control systems by using RFID technology spent some amount of money per year for the past two years in developing their latest product. Then, Company MOMOS has decided to change their strategy in their investment plan by ignoring the cash flow in the past two years. They plan to invest RM4000 in year 1, then decrease by RM550 per year through year 4. There is no new investment and no withdrawals from year 5 to year 9. Then, in year 10, they withdraw RM8,000, decreasing 5% per year through year 13. i. ii. iii. Construct a cash flow diagram for this problem. (5 marks) If the interest rate is 6% per year, determine if the anticipated withdrawals will be covered by the investment and appreciation plans. Justify your answer with complete calculations. (15 marks) If the withdrawal series is over or underfunded, determine the exact amount available in year 10 (the beginning of withdrawal series), provided all other estimates remain the same
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