Question 21 (4 marks) How long would it take R20000 invested today at a simple interest rate of 9% p.a. to reach an investment goal of R30000. A Approximately 5.6 years B Approximately 6.1 years C Approximately 4.7 years D Approximately 5.1 years Question 22 (4 marks) How long would it take R20 000 invested today at a nominal annual continuously compounding (NACC) interest rate of 9% p.a. to reach an investment goal of R30 000. A Approximately 5.6 years B Approximately 4.7 years C Approximately 5.1 years D Approximately 4.3 years 8 Use the information provided below to answer questions 23 to 25. The projected annual net cash flows associated with an investment opportunity are shown below in Table 5. The expected rate of return on the investment is 12%. Year Future Cash flows Discount factor Present Values 1 220 000 K L 2 250 000 0.7972 199 300 3 300 000 M N 4 200 000 0.6355 127 100 5 180 000 0.5674 102 132 Table 5: Annual net cash flows of the investment opportunity. Question 23 (4 marks) Determine the missing values represented by K, L, M, and N in Table 5. A K = 0.8929; L = R196 438; M = 0.7118 and N = R213 540 B K = 0.9009; L = R198 198; M = 0.7312 and N = R219 360 C K = 0.9174; L = R201 828; M = 0.7722 and N = R231 660 D K = 0.8929; L = R196 438; M = 0.7722 and N = R231 540 Question 24 (4 marks) Calculate the total present value of the net cash flows from the investment opportunity. A R859 028 B R902 575 C R838 510 D R866 704 Question 25 (4 marks) If the Net Present Value of the investment opportunity is an unfavourable R11 490, what is the initial outlay?