QUESTION 2: FINANCIAL MATHEMATICS (Total 25 marks) 1 The table below shows the cash flows generated by an investment. The discount rate for the investment is 6%. Timing Cash flow (e Initial - 380,000 End of year 105,000 End of year 2 125,000 End of year 3 119,000 End of year 4 92,000 a Calculate the NPV of the project. (5 marks) b. Based on the result in part a. above, should the investment be made? Explain your answer. (2 marks) II If 50,000 is deposited for 12 years at 3.5% interest per year, calculate the value at the end of the term if interest is compounded a Monthly (3 marks) b. Continuously (3 marks) III. An investment pays a return of 6% per year compounded annually. If I want my a investment to be worth 1,000,000 in 20 years' time, how much should I invest today? (4 marks)