[Round all answers to 2 decimal places unless otherwise specified.] Question Al Part 1 (a) Your father is now aged 50 and plans to start saving for 15 years to accumulate $1,500,000 at the age of 65 as his retirement fund. Given the required return is 9 percent compounded monthly, what will be his monthly payments with the first payment occurring one month from now? (5 marks) (b) Followed with the previous question in part (a), what will be his annual payments if your father makes an annual saving with the first payment starting from today? (6 marks) Part II Flamingo Inn has outsourced its laundry service to a contract cleaning company at an annual cost of S360,000. Now, due to escalating costs, Flamingo is considering performing the service itself by purchasing new washers, dryers, and presses at a total cost of 500,000. Compared to outsourcing, the Financial Controller expects average cash savings of S150,000 per year. The machines are expected to last for 5 years with no residual value. The desired rate of return is 10% for this project. Given: Present Value of an Annuity S1 per Period: Periods 10% 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 To evaluate whether to undertake any capital budgeting project proposal, the company only carry out those projects that can get back its investment capital within 2 years. 40 Page 3 of 8