Accounting And Finance Reports

Running head: ACCOUNTING AND FINANCE
-
Accounting and Finance
Name of the Student:
Name of the University:
Author’s Note:

ACCOUNTING AND FINANCE1
Table of Contents
Answer to question 1:......................................................................................................................3
Part (a):........................................................................................................................................3
Part (b):........................................................................................................................................3
Sub part (i):..............................................................................................................................3
Sub part (ii):.............................................................................................................................4
Part (c):........................................................................................................................................5
Sub part (i):..............................................................................................................................5
Sub part (ii):.............................................................................................................................6
Answer to question 2:......................................................................................................................6
Part (a):........................................................................................................................................6
Sub part (i):..............................................................................................................................6
Sub part (ii):.............................................................................................................................7
Sub part (iii):............................................................................................................................7
Sub part (iv):............................................................................................................................7
Part (b):........................................................................................................................................7
Answer to question 3:......................................................................................................................7
Part (a):........................................................................................................................................7
Sub part (i):..............................................................................................................................7

ACCOUNTING AND FINANCE2
Sub part (ii):.............................................................................................................................8
Part (b):........................................................................................................................................8
Part (c):........................................................................................................................................9
Sub part (i) & (ii):....................................................................................................................9
Sub part (iii):............................................................................................................................9
Part (d):......................................................................................................................................10
Sub part (i) & (ii):..................................................................................................................10
Sub part (iii):..........................................................................................................................10
Sub part (iv):..........................................................................................................................11
Sub part (v):...........................................................................................................................11
Sub part (vi):..........................................................................................................................11
Sub part (vii):.........................................................................................................................11
Sub part (viii):........................................................................................................................12
Sub part (ix):..........................................................................................................................13
Sub part (x):...........................................................................................................................13
References and bibliography:........................................................................................................14

ACCOUNTING AND FINANCE3
Answer to question 1:
Part (a):
Number of years till the expected date of admission (n) = 5
Annual interest rate applicable (i) = 4% (Interest is compounded monthly)
Formula for Future Value of annuity due (FV) = PMT ×
( (1+ 4 %
12 )5× 12
−1
4 %
12 )=$ 60000
Where Future value will be 60000, Interest Rate will be 4% and the time period will be around 5
years of time.
Annual deposit to be made to build the fund (PMT) =
$ 60,000
( (1+ 4 %
12 )5× 12
−1
4 %
12 )=$ 904.99
Part (b):
Sub part (i):
Formula NPV = ⨊(P/ (1+i)t ) – C, where P = Net Period Cash Flow, i = Discount Rate (or rate
of return), t = Number of time periods and C = Initial Investment.
End of year Cash inflows ($mil) Present Value Factor
@10%
PV of cash inflows
($mil)