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Exam (elaborations)

Fin2603 Assessment 2 Sem 1 Of 2025 Expected Questions And Answers.

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THIS DOCUMENT CONTAINS FIN2603 ASSESSMENT 2 SEM 1 OF 2025 EXPECTED QUESTIONS AND ANSWERS.USE IT AS A GUIDE AND FOR PRACTICE TOSCORE ABOVE 80%

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Started on Monday, 28 April 2025, 11:41 AM
State Finished
Completed on Monday, 28 April 2025, 12:31 PM
Time taken 49 mins 48 secs

Question 1 At what annual interest rate must a single amount of R5 000 be
Complete invested for 5 years to yield approximately R7 500?
Marked out of
1.00
a. 10.76%
Flag
question b. 7.20%
OSCAR THE TUTOR
c. 8.45%
+27737560989
d. 9.86% for FAC MAC ECS DSC TAX QMI FIN INV BNU STA tutorials




Question 2 Calculate the difference between the following two investment
Complete proposals.
Marked out of
(a) R1 401.82 invested annually for five successive years at 9% per
1.00 annum.
(b) R5 209.22 invested for five years at 10% per annum compound
Flag
question interest.


a. R100.35
b. R 36.10
c. R0
d. R 80.25




Question 3 Calculate the future value (FV) of R15 000 invested for six years at an
Complete interest rate of 8%, compounded monthly.
Marked out of
1.00
a. R26 734
Flag
question b. R24 260
c. R14 026
d. R23 803

,Question 4 Calculate the growth rate of the following stream of cash flows:
Complete YEAR CASH FLOW
Marked out of 2024 R 3 600 OSCAR THE TUTOR
1.00 2023 R 3 000
+27737560989
2022 R 1 900
Flag for FAC MAC ECS DSC TAX QMI FIN IN
question 2021 R 1 000 BNU STA tutorials


a. 26%
b. 53%
c. 23%
d. 43%




Question 5 Calculate the present value (PV) of R100 000 received 9 years from
Complete today at an interest rate of 12%.
Marked out of
1.00 a. R36 061
Flag
question
b. R27 895
c. R37 980
d. R43 998




Question 6 Find the present value of the following stream of cash flows by
Complete assuming that the organisation has an opportunity cost of 11%.
Marked out of
Years 1–2: R 20 000
1.00 Years 3–8: R 30 000
Flag
question a. R100 268.41
b. R137 258.45
c. R152 356.88
d. R 71 203.41




Question 7 Jefferson, the export manager of an international company, wishes to
Complete replace a machine five years from now with a new machine that will
cost R500 000 in five years' time. If equal end-of-year deposits are

, Marked out of made into an account paying an annual interest of 9%, calculate the
1.00
size of each deposit.
Flag
question
a. R95 345.78
b. R23 535.24
c. R83 546.23
d. R49 382.38




Question 8 The financial manager is evaluating a proposal for a new project with
Complete a cost of capital of 13.5%.
Marked out of
The cash flows for the project are estimated as follows:
1.00 Year Net cash flows
0 -R 1 000 000
Flag
question 1 R 650 000
2 R 450 000
3 R 350 000

The IRR is ...

a. 20.05%
b. 12.03%
c. 17.04%
d. 24.03%




Question 9 The financial manager is evaluating a proposal for a new project with
Complete a cost of capital of 13.5%.
Marked out of
The cash flows for the project are estimated as follows:
1.00 Year Net cash flows
0 -R 1 000 000
Flag
question 1 R 650 000
2 R 450 000 OSCAR THE TUTOR
3 R 350 000
+27737560989
for FAC MAC ECS DSC TAX QMI
The NPV is ... FIN INV BNU STA tutorials


a. R171 382.00
b. R161 381.00

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April 28, 2025
Number of pages
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Written in
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Type
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Questions & answers
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