Question 1 You are managing a company called Max Sdn Bhd, which uses various equipment to run its operations. This equipment needs to be serviced and repaired from time to time. For the last five years, your company spent, on average, RM9,000 per year on the maintenance of this equipment. You estimate that this yearly maintenance expense will continue to be around the same amount for some foreseeable future. One of the principal equipment suppliers approaches you with an offer to service your company's equipment. They offer to fully maintain your equipment for five years in exchange for RM33,000 to be paid right after the contract is signed. If your company requires a minimum return of 9% on all its investments, would you accept this offer? Question 6 Your parents have made a huge fortune in their life and are considering to endow some of it. You suggest to them to endow it to Monash's School of Medicine to fund their ongoing research activities as you believe that their research will benefit the society at large. The expenses of the School on research are RM10 million, and they will be growing 3% per year for as long as the School exists (assume that the School will live forever). The School usually invests its excess funds in financial instruments that give it a return of 11%. Assume that the BFW1001 Foundations Of Finance Tutorial 4 - Time Value of Money: Annuity, Perpetuity, EAR Week 5, S2 2020 School can invest the endowment funds at the same rate for as long as it wants. How much would your parents have to contribute for the School to have enough funds to cover its research expenses forever