You are planning to renew your car in eight years from now. The new car is expected to cost $50,000

and you believe that your old car would sell for $10,000 at that time. If you are going to make equal

annual end-of-year payments to an investment account that pays 7% annual interest, how large do

these annual payments need to be, to pay for the $40,000 you would require? (4 marks)

(d) You are the finance manager of a service firm. The budgeting exercise will start shortly and you

apprehend that it's going to be a challenging task to convince departments to agree on their budgets.

(i) Explain how communication can be used to reduce conflicts between departments during the

budgeting process (10 marks)