rate that makes the NPV positive. 9. Phoney Communications Ltd pays income as franked dividends usable by Australian resident shareholders. The company is considering the purchase of a new telecommunications tower to replace an existing one. The new tower would be used to improve mobile phone coverage but with technological advances happening so quickly, Phoney expects that in four years' time the tower will be redundant. Expected sale value on the tower is $200,000. The new machine costs $1,000,000. As the tower will be placed in a native bushland area, removal of the tower must be followed by re-establishment of foliage, which will cost approximately $2,000. Compute the terminal cash flow for this capital budgeting analysis. a. S202,000 b. $198,000 C. $802,000 d. 5798,000 10. A commercial bank will loan you $27,000 for five years to buy a car. The loan must be repaid in 60 cqual monthly payments. The annual interest rate on the loan is 5%. What is the amount of the monthly payments? A $1,426.36 B. S688.11 C. $6.236.31 D. S509.52 Page 5 of 9 Name, Student ID Focus E United States) P 9 w RA A MacBook Pro DHI FS FT