Financial Management I Page 2 of 2
Question 1
Mrs. Robinson plans to purchase a home in the next five years. She plans to join a sou-sou that would pay her $10 000 per year. She also runs a café which she plans to get the following profits from:
| Years | Amounts |
| 1 | $8 560 |
| 2 | $9 450 |
| 3 | $7 250 |
| 4 | $12 000 |
| 5 | $11 900 |
Her hope is to invest these amounts into FCIB at an interest rate of 12%. Compute how much money Mrs. Robinson would have at the end of the five years.
Question 2
Mr. Bart is expecting to receive a yearly disbursement from his insurance company of $2 500 for three years. He also is expecting the following returns from his investment in Massy Limited:
| Years | Amounts |
| 1 | $1 000 |
| 2 | $950 |
| 3 | $1 175 |
He is curious to know how much these inflows would be worth today. Compute for Mr. Bart what the value of his future disbursements and cash flows will be today. The rate of return is 8%.
Instructions:
Students are required to:
- Calculate using excel.
- Calculate using the tables.
- Calculate using the appropriate financial equations.
This assignment is worth 15% of your overall assessment.
GUIDELINES FOR PROJECT
The following governing conditions apply to the Presentation:
- The title page is to include the following in the order specified:
1/ Name of Education Institution (at top of page)
2/ Title of Course and Course code
3/ Name of Students and ID numbers
4/ Title of Project
5/ Date submitted
6/ Name of Lecturer.
- Reference page (APA Format)
- Font Size: 12 pt.
- Font Style: Times New Roman
This assessment is worth 15% of your total marks and must be done within the deadline specified. Plagiarism, improper documentation and blatant careless incorrect grammar and spelling will be penalized by the loss of 2.5 marks of your grade in each case.
End of Assignment