QUESTION 3 (20 MARKS) OUTM 3.1 The estimated transaction cashflows of a project is summarized as follows: Expenditure ROWS UTM Initial investment now: RM 100,000 UTM Annual income of RM 40,000 starting year two (2) until year four (4). Income (4 marks) With the aid of cash flow diagrams, determine the Rate of Investment (ROI) of the above UTM project. UTM UTM 6UTM UTM 3.2 Figure 3.1 shows a cash flow diagram for an engineering project. The project has an initial investment of RM 120,000 and expenditure of RM 10,000 every six months for three (3) years. UTM A2 RM?/ 3 months 36 months. 1'5 12 6 A = RM 10,000/6 months UTM 3.1sment UTM M UTM BUTM i=12% per year compounded every three months Figure 3.1: Cash flow of an engineering project RM 120,000 OUT (6 marks) OUTM OUTM You have been asked to determine the minimum income required for every three (3) months starting from the first quarter of year two (2) until at the end of year three (3) to cover all the project expenses. OUTM BUT ONE OUTN UTM OUTM