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please do it in 10 minutes will upvote QUESTION 2: FINANCIAL MATHEMATICS (Total 25 marks) I. The table below shows the cash flows generated by

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please do it in 10 minutes will upvote

QUESTION 2: FINANCIAL MATHEMATICS (Total 25 marks) I. The table below shows the cash flows generated by an investment. The discount rate for the investment is 6%. Timing Initial End of year 1 2 End of year 3 End of year 4 End of year Cash flow () - 380,000 105,000 125,000 119.000 92.000 a. Calculate the NPV of the project. (5 marks) b. Based on the result in part a. above, should the investment be made? Explain your (2 marks) answer. II. If 50,000 is deposited for 12 years at 3.5% interest per year, calculate the value at the end of the term if interest is compounded a. Monthly (3 marks) b. Continuously (3 marks) III. An investment pays a return of 6% per year compounded annually. If I want my investment to be worth 1,000,000 in 20 years' time, how much should I invest today? (4 marks) QUESTION 2 continues on next page

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