Jamhuri Ltd wishes to set aside a fund that would be used to finance a project that needs to commence fifteen years from now. The fund would involve quarterly cash flows of amounts derived from the regular profits into a reserve fund that would be deposited in an account that earns 18% interest per annum. The envisioned project would require monthly withdrawals of Sh. 300,000 from the account with each withdrawal at the beginning of each month for Six years (the duration of the implementation phase). The company requires to set adequate savings to fund the project.

i) How much should be the quarterly savings to accomplish the task?

ii) Is the project worthwhile if it would generate annual cashflows of Sh. 650,000 for a further 15 years after implementation? The required rate of return is 18%