Question 1 (a) Tomi Liam has an opportunity to purchase any of the investments shown in the following table. The purchase price, the amount of the single cash inflow, and its year of receipt are given for each investment. Which purchase recommendations would you make, assuming. that Tomi can earn 10% on his investments? Investment A B D Price RM18,000 600 3,500 1,000 Single cash inflow Year of receipt RM30,000 5 3,000 20 10,000 10 15.000 40 (8 marks) (6) Using the information in the accompanying table, answer the questions that follow. Assume all transactions take place at the end of the year Year 1 2 3 4 5 6 Cash flow RM3,000 0 4,000 8,000 12.000 6,000 (1) (ii) Using a discount rate of 7% determine the present value of the cash flows 6 marks) Suppose you had a lump sum equal to your answer in part). You invested this sum in an account earning a 7% return each year How much would you have after 6 years. (2 marks) () Suppose you had a lump sum equal to your answer in part (. You invested this sum in an account earning a 7% return each year, How much would you have after 6 years. (2 marks) (iii) Calculate the future value of cash flows 6 years from now and compare it to your answer in part (1)