Semi- annual Periods 1 2 3 Principal Future value Concordia Clubs Corp (CCC) - It has $500,000 investable fund to invest in either "BIG" or "Singa". The firm's cost of capital is 12% As the table below indicates, CCC should consider making the Singa investment because this will allow CCC to have more money after eighteen months. However, your manager directs you to calculate the present value of cash inflow of BIG and Singa respectively and compare on present value basis. The cost of capital is 12% per annum. Explain why on present value terms BIG may or may not be higher than Singa, BIG Investment Semi- annual Dividend Income 7% $35,000.00 35,000.00 35,000.00 500,000.00 Future Value Factor @ 12%/2 =6% 1.1236 1.0600 1.0000 1.0000 Future Value $39,326.00 37,100.00 35,000.00 500,000.00 $611,426.00 Quarterly Periods 1 2 3 4 5 6 Singa Investment Future Value Factor @ 12%/4 = 3% Quarterly Dividend $12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 531,250.00 1.1593 1.1255 1.0927 1.0609 1.0300 1.0000 1.0000 Future Value $14,491.25 14,068.75 13,658.75 13,261.25 12,875.00 12,500.00 531,250.00 $612,105.00