Consider the cash-flow sequences @ =(2, ---,le) M = (Mo., Mo) When is the cashflow sequence preferable over [10 Marks) H

[answerhappygod]

Consider The Cash Flow Sequences 2 Le M Mo Mo When Is The Cashflow Sequence Preferable Over 10 Marks H 1 (69.33 KiB) Viewed 41 times

Consider the cash-flow sequences @ =(2, ---,le) M = (Mo., Mo) When is the cashflow sequence preferable over [10 Marks) He am" 7 An Investment of N$ 200.00 returns Ng 12000 at the end of 2. What is the internal rate of return (IRRT (? is Marks] 1 year and No 100.00 at the end of year & Compare the following two investment projects * Project A: Investment costing $ 50000.co which returns No 8000.00 each half-year for the next 4 years. *Project B: Government bonds which provide a yield of 72 every 6 months CY 4 An Investor is considering whether to invest in either both of the following loans: Loan ti for purchase price & NË 10000, 00, the invester will receive Nooo oo per annum puyable quaderly in errear for 15 years, Loan B: for a purchase price M lloco.04 the investor will receive an income of N$ 605.00 per annum, payable annually in aurear for is years, and neturn of his outlay ab the end of this period The investor may tead borrow money annum would you advise him to invest either loan of and if so which would be the most profitable ? ur at umper ③ Consider the cash-flow sequence a =(3,9, 20, 4, 2), b = (6, 7, 3, 1, 36) at time too...gy . Find the NPV of the cashflow assuming an interest rate of [5 Marks]