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FIN2603 ASSIGNMENT 2 FOR 2ND SEMESTER 2024 $2.83   Add to cart

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FIN2603 ASSIGNMENT 2 FOR 2ND SEMESTER 2024

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Question 1 Complete Marked out of 1.00 Flag question Question text The financial manager is evaluating a proposal for a new project with a cost of capital of 13.5%. The cash flows for the project are estimated as follows: Year Net cash flows 0 -R 1 000 000 1 R 65...

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  • September 5, 2024
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FIN2603
ASSIGNMENT 2 FOR 2ND SEMESTER 2024




FEND TUTORIALS

, Started on Thursday, 5 September 2024, 8:02 AM
State Finished
Completed on Thursday, 5 September 2024, 8:11 AM
Time taken 9 mins 12 secs
Question 1
Complete
Marked out of 1.00

Flag question

Question text
The financial manager is evaluating a proposal for a new project with a cost of capital of 13.5%.

The cash flows for the project are estimated as follows:
Year Net cash flows
0 -R 1 000 000
1 R 650 000
2 R 450 000
3 R 350 000

The IRR is ...


a.
12.03%

b.
17.04%

c.
20.05%

d.
24.03%

Question 2
Complete
Marked out of 1.00

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Question text
Calculate the difference between the following two investment proposals.(a) R1 401.82 invested
annually for five successive years at 9% per annum.(b) R5 209.22 invested for five years at 10% per
annum compound interest.


a.
R0


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