PLZ PLA HELP HERE

QUESTION 1

You have $21,000 in cash. You can deposit it today in the Charter Hall Direct Industrial Fund earning 5.6% semiannually; or you can wait, put in a CBA term deposit for 24 months earning 0.25% annually, and then invest in your friends caf in 2 years. Your friend is promising you a return of 7.0% on your investment. Whichever alternative you choose, you will need to cash in at the end of 10 years for a house deposit. Assume your friend is trustworthy and that both investments carry the same risk. Show your workings in support of the investment that you choose?

QUESTION 2

You are analysing 3 proposed capital investments with the following cash flows.

The discount rate for the projects is 4.5%. Calculate the Net Present Value for each project. Which project, or projects, should be accepted if you have unlimited funds to invest? Show your workings.

Year 3 5 6 -1.200.000 - 153,000 48.200 50.100 52,100 54,200 1,638,000 Project A Project B -1.400,000 47.000 48.700 50.600 52.600 54.700 1,638,000 Project C -2.200.000 93,500 97,300 101.200 105,300 109,500 2.478,000