Q No. 1 Find the following futures and present values. Compounding/discounting occurs annually. (Total marks 1)

a. An initial 50 Million compounded for 5 year at 10%

d. The present value of 98 Million due in 4 years at a discount rate of 9%

Q No 2 Set up an amortization schedule for a 5 Million Rupees loan to be repaid in equal instalments at the end of each of the next 5 years. The annual interest rate is 8%. (Total Marks 2)

Q No 3 You are offered a signing bonus of Rs 2,000,000 or a future payment of RS 2,500,000 at the end of three years from now. If you can earn 7% on invested funds, would you take the signing bonus or wait for the future payment?

Q No 4 Whats the present value of the following uneven cash flow stream: RS 0 at Time 0, RS 100 in Year 1 (or at Time 1), RS 200 in Year 2, RS 0 in Year 3, and RS 400 in Year 4 if the interest rate is 8%?