FIN3704 Assignment 5 Full Solutions Semester 2 2024 - DUE 25 October 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)...........
Question 2 (20 Marks) The Port Saint John Water Park has thought abo...
FIN3704
ASSIGNMENT 5 SEMESTER 2 2024
UNIQUE NO.
DUE DATE: 15 OCTOBER 2024
, FIN3704
Assignment 5 Semester 2 2024
Unique Number:
Due Date: 10 October 2024
Applied Financial Management
Question 1:
a. Present and Future Value of Cash Flows
We’re given a series of cash flows over 5 years:
Year 1: R45,000
Year 2: R40,000
Year 3: R35,000
Year 4: R30,000
Year 5: R25,000
The required rate of return is 9% per year.
To calculate present value (PV), we need to discount each cash flow back to the
present using the formula:
PV = CF / (1+r) ^t
Where:
CFCFCF is the cash flow for that year,
rrr is the required rate of return (9%, or 0.09),
ttt is the year number.
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