Question 1 [6 Marks] Two investment opportunities are open to you: Investment 1 and Investment 2. Each has an initial cost of R10,000. Investment 1 Cash Flows R 5.000 6,000 7,000 8,000 Year 1 2. 3 4 Investment 2 Cash Flows R Year 8,000 1 7,000 2 6,000 3 5,000 4 Required: Assuming that you desire a 10% return on your initial investment, calculate the net present value of the two alternatives options and evaluate their relative attractiveness. Question 2 [8 Marks] An investment offers the following year-end cash flows: End of Year 1 Cash Flow R20,000 R30,000 R15,000 2 3 Required: Using a 15% interest rate, convert this series of irregular cash flows to an equivalent in present value terms) 3-year annuity