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Q.4. Find the total terminal value of the following cash flows when compounded at 11 per cent. Cash flow occur at annual intervals and the

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Q.4. Find the total terminal value of the following cash flows when compounded at 11 per cent. Cash flow occur at annual intervals and the fourth year's cash flow is the last. Points in time(yearly intervals) ts Cash flow (OMR) +1100 +1210 +1600 +2150 ti t2 14 If OMR 6670 is the initial cash flow at time 0. calculate the compounding rate that will equate the initial cash outflow with the terminal value as calculated above. (2+1 marks)

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