FIN745: MANAGERIAL FINANCE Activity 3.1a Based on the following cash flows, determine the patterns of each cash flow. Year SS TT UU VV XX YY 0 300,000 120,000 100,000 150,000 200,000 120,000 100,000 90,000 200,000 W 120,000 100,000 200,000 120,000 100,000 450,000 115,000 120,000 120,000 200,000 Activity 3.1b Sophia Brown places $5,200 in a fixed deposit account paying 4 percent interest compounded annually. She would like to predict her total saving if she plans to withdraw her deposit only at the end of year 6. a) Draw a timeline for Sophia Brown to illustrate her investment plan. b) Determine the appropriate technique for Sophia Brown for her prediction. c) Calculate predicted amount that Sophia Brown could withdraw at the end of year 6. d) How does the predicted value may change if the bank offers 3 percent interest compounded annually? e) How does the predicted value may change if the bank offers 4 percent interest compounded semi-annually? f) How does the predicted value may change if Sophia Brown decided to deposit her money until 4 years instead of 6 years using 4 percent interest compounded annually? g) How does the predicted value may change if Sophia Brown decided to deposit her money until 8 years instead of 6 years using 4 percent interest compounded annually? h) In case Sophia Brown needs to accumulate $7,000 by the end of the year 6, determine the required amount to be deposited in the investment account that offers a 4 percent interest rate per annum