Q1. What is the objective of corporate finance and how the finance manager tries to achieve it?(8 Marks)

Q2. An investment offers $4,900 per year for 15 years, with the first payment occurring one year from now. If the required return is 8%, what is the value of the investment? What would the value be if the payments occurred for 40 years? 75 years? Forever? (8 Marks)

Q3. Indicate the impact of the following on the cash and operating cycles, respectively. Use the letter I to indicate an increase, the letter D for a decrease, and the letter N for no change. (8 Marks)

a. The terms of cash discounts offered to customers are made less favorable.

b. The cash discounts offered by suppliers increased; thus, payments are made easier.

c. An increased number of customers begin to pay in cash instead of credit.

d. Fewer raw materials than usual are purchased.

e. A greater percentage of raw material purchases are paid for with credit.

f. More finished goods are produced for inventory instead of for order.