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Requirement-A. A firm has an initial endowment of $83,347. The firm has identified three non-divisible feasible projects: Project-M requires $26,130 investment now to generate $30,515

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Requirement-A. A firm has an initial endowment of $83,347. The firm has identified three non-divisible feasible projects: Project-M requires $26,130 investment now to generate $30,515 next year: Project-N requires $20,006 investment now to generate $33,288 next year, and Project-P requires $53,914 investment now to generate $56,840 next year. The firm invests in projects reasonably to maximise wealth. The average expected rate of return from the market is 12%. If Rob owns 45% shares of the firm, how much dividend would be expected by Rob in the next period based on the Two-Period Perfect Certainty model? Requirement-B. A loan amount of $28,814 will be due after 8 years. Cob has a deposit plan to deposit $6,497 at the end of each year for the next 8 years. If the deposit generates 10% interest compounded monthly, find the deficit or surplus amount from this deposit plan to repay the total loan amount after 8 years. Requirement-C. Bob will be starting a 2-year apprenticeship program in 23 months' time. His mother, Liz, has promised him a living allowance of $224.6 per month to help support him during this time. If the interest rate is 9.1 percent per annum, compounding monthly, how much money will Liz need to set aside today to finance Bob's allowance? Requirement-A. A firm has an initial endowment of $83,347. The firm has identified three non-divisible feasible projects: Project-M requires $26,130 investment now to generate $30,515 next year: Project-N requires $20,006 investment now to generate $33,288 next year, and Project-P requires $53,914 investment now to generate $56,840 next year. The firm invests in projects reasonably to maximise wealth. The average expected rate of return from the market is 12%. If Rob owns 45% shares of the firm, how much dividend would be expected by Rob in the next period based on the Two-Period Perfect Certainty model? Requirement-B. A loan amount of $28,814 will be due after 8 years. Cob has a deposit plan to deposit $6,497 at the end of each year for the next 8 years. If the deposit generates 10% interest compounded monthly, find the deficit or surplus amount from this deposit plan to repay the total loan amount after 8 years. Requirement-C. Bob will be starting a 2-year apprenticeship program in 23 months' time. His mother, Liz, has promised him a living allowance of $224.6 per month to help support him during this time. If the interest rate is 9.1 percent per annum, compounding monthly, how much money will Liz need to set aside today to finance Bob's allowance?

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