Rm3000 at the end of year 3 and rm5000 at the end of year 4


An investment promises the following cash flow stream: RM1,000 at end of Year 1; RM2,000 at the end of Year 2; RM3,000 at the end of Year 3; and RM5,000 at the end of Year 4 At a discount rate of 5%, what is the present value of the cash flow stream? B) You have just won a puzzle contest where you were offered two choices of prizes: that whether to accept $ 60,000 today or $ 12,000 at the end of each year for 5 consecutive years. If the cash flow is discounted at a yearly rate of 12 percent and compounded twice a year, which choice you choose? C) Orchid Company made a decision to deposit $ 5,000 at the end of the first and second year, with drawing $ 2,000 at the end of third year and depositing $ 4,000 again at the end of the year. How much is this future value cash flow of the end of the fourth year if the annual interest rate is 12% per years? D) You need $ 80,000 to start your Ph.D program 3 Years from today. If the bank interest rate is 7% compounded quarterly, how much should you deposit in your bank every quarter until you have enough money to start your Ph.D program?

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Financial Management: Rm3000 at the end of year 3 and rm5000 at the end of year 4
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