FIN3704 Assignment 05
Student Number: 45775761
Unique Number: 616065
Question 01: Marks 10
Parts A & B
Req. Ret. 9%
Period Cash Flow Cash Flow
1 45,000
2 40,000
3 35,000
4 30,000
5 25,000
PV R139,479.07
FV $214,605.83
Part C
Period Cash Flow Cash Flow
0 (100,000) (100,000)
1 45,000 25,000
2 40,000 30,000
3 35,000 35,000
4 30,000 40,000
5 25,000 45,000
IRR 25.00% 19.71%
Part D
Yes I would be willing to invest in either of the projects because they have IRRs above the required return of 9%.
Student Number: 45775761
Unique Number: 616065
Question 01: Marks 10
Parts A & B
Req. Ret. 9%
Period Cash Flow Cash Flow
1 45,000
2 40,000
3 35,000
4 30,000
5 25,000
PV R139,479.07
FV $214,605.83
Part C
Period Cash Flow Cash Flow
0 (100,000) (100,000)
1 45,000 25,000
2 40,000 30,000
3 35,000 35,000
4 30,000 40,000
5 25,000 45,000
IRR 25.00% 19.71%
Part D
Yes I would be willing to invest in either of the projects because they have IRRs above the required return of 9%.