Profitable companies always have sufficient cash, so the more profitable a company is, the less important it is to manage cash flows carefully. Do you agree? Please discuss.

Tutorial questions 25300 FBF Tutorial 3- Time Value of Money 2 o saving $200 a month. How much would she have accumulated after n a bonus-interest account paying 4.8% pa, compounding 10 years if she saved the money bonus-interest monthly? What is the present value of this series of cash flows Gabrielle has just won the now or she 496 p.a option should she choose? 2. state lottery. She is given the choice of receiving a total of $1.5 million e paid S50,000 every six months for the next 20 years. If Gabrieile can earn mi-annually on her investments, from a strict economic point of view which pounde 3. Which annuity has a higher future value in the year 2030 if interest rates are 58xeaa (a) (b) $800 at the end of each year from 2017 to 2022, or $500 at the end of each year from 2019 to 2030? 4. How much do you have to deposit today so that you can make withdrawals of $4,000 a q exactly the first withdrawal occurring in exactly eleven years and the final withdrawal occurring in thirteen years' time. Assume an interest rate of 6% pa. compounding quarterly. With an 8% p.a. interest rate, calculate the present value of the following streams of payments: (a) $1200 per year forever, with the first payment in one year's time (b) $1200 per year forever, with the first payment occurring five years from today 5. Lucy and Malcolm purchase a $700,000 house by paying a $250,000 deposit and borrowing the balance. Their loan will be repaid with monthly payments over a twenty-year term at a rate of 6% p.a. compounding monthly (a) What is the size of each repayment? (b) Complete the loan amortisation schedule for the first two months. (c) After two months, the interest rate on their variable rate loan increases to 6.60% pa. 6. compounding monthly. What will their new monthly repayment be