QUESTION 1: You decided to help a friend of you by lending him an amount of (2000) JD free of interest. He promised you to repay the amount on annual basis starting from the end of year (1) on (4) periods. If you know that the MARR= 4% A. Draw cash flow diagram. B. Calculate your (oses) or (profits). QUESTION 2: An investment of 200,000 JD in a certain business made today & received annual income of 50,000 JD for 9 years. What is the ROR? QUESTION 3: you are running a business that makes you deposit the cash in the bank periodically on daily basis (average 1,000 JD). Meanwhile you need to withdraw some cash at end of each month to pay the salaries of your employees (average 5,000 JD) if you know that the nominal Interest rate is equal to 5% and the compounding period is quarterly Calculate the future value of your money at the end of first year based on two scenarios: A When interest is not earned. B. When interest is earned. QUESTION 4: For the cash flow of the following project: DESCRIPTION PROJECT FIRST COST 60,000 OPERATING COST/YEAR 3,000 INCOME VALUE/YEAR 10,000 LIFE TIME(YEARS) 8 A. Draw cash flow diagrams. B. What is the expected ROR? C. What is the equivalent annual value? D. What is the minimum selling price with ROR=20%? QUESTION 5: WITH MARR = 8%, FIND THE BEST PROJECT. DESCRIPTION PROJECT A PROJECTS PROJECT C FIRST COST 20,000 18,000 33,000 OPERATING COST 9,000 7000 13,500 SALVAGE VALUE 2,000 2,500 3,000 LIFE TIME(YEARS) 7 7 7 QUESTION 6: WITH MARR=12%, FIND THE BEST VENDOR. DESCRIPTION VENDOR A VENDOR B FIRST COST 25,000 28,000 OPERATING COST 5,000 6,000 SALVAGE VALUE 5,000 10,000 LIFE TIME(YEARS) 4 6