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Mbaimbai a customer of the deaier firm has $40 million. The dealer firm agrees to deliver (sell) $40 million of the Treasury security to the

Mbaimbai a customer of the deaier firm has $40 million. The dealer firm agrees to deliver (sell) $40 million of the Treasury security to the customer in exchange for $40 million and simultancously to buy back (repurchase) the same Treasury security twenty days later for $.40 million at a repo rare of 5% SIPAEE RFQITRFT: 4. Calculate for both MODELS: The Payback petiod (Conventisnal or traditional) in years to two decimal places tharks) The Accounting Rate of Return (ARR) to docimal places ( 5 marks) iii. The Net Present Vailue (NPV) ( 5 marks) iv. The Profitability indes (PI), to two decimal places ( 3

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