Question 5 a) Mrs. Adura plans to retire in 20 years time at the age of 60. Determine how much money that she needs to d

[answerhappygod]

Question 5 A Mrs Adura Plans To Retire In 20 Years Time At The Age Of 60 Determine How Much Money That She Needs To D 1 (66.2 KiB) Viewed 29 times

Question 5 a) Mrs. Adura plans to retire in 20 years time at the age of 60. Determine how much money that she needs to deposit today in order for her to have sufficient amount of RM1,800 every month for the next 20 years. She would also expect to utilise the cash flows after her 2 retirement at the beginning of every period. The annual interest rate offered by the market is 9 percent. (4 marks) b) DANZ Travel & Tours has developed a vacation glamping area in Desaru, Johor ten years ago. The location of the glamping site is quite close to the newly built entertainment park, Desaru Coast Adventure Waterpark, which indirectly provides the opportunity for the DANZ company to generate more cash flows. Find the present value of the companys' cash flows, which involving a RM50,000 received at the end of year 1, a RM30,000 received at the end of year 2, a RM20,000 cash outflow at the end of year 3, and RM60,000 received at the end of years 4 through 10, given the appropriate discount rate of 8 percent. (6 marks) [Total: 10 Marks]