Financial Management

Running head: FINANCIAL MANAGEMENT
Financial Management
Name of the Student:
Name of the University:
Author’s Note:

FINANCIAL MANAGEMENT1
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................3
Question 3........................................................................................................................................4
Question 4........................................................................................................................................5
References........................................................................................................................................6

FINANCIAL MANAGEMENT2
Question 1
a) The cash flows for the Broadbent Group was prepared by taking all the cash inflows and
outflows that will be taking place in the 12-years of time frame. The cash inflows that
will be occurring for the company will be around $42,000 on an annual basis for a sum of
twenty years after the twelve-years of period for the company (Chan & Rate 2018). The
trend line for the cash flows is shown as below:
1
3
5
7
9
11
13
15
17
19
21
23
25
27
29
31
($20,000.00)
($10,000.00)
$0.00
$10,000.00
$20,000.00
$30,000.00
$40,000.00
$50,000.00
Trend Line of the Cash Flows
b) It is necessary that a sum of $313,716 needs to be deposited by the Broadbent Group Ltd
in the end of year 12 by the company (Farrell, 2016).
c) Broadbent must deposit a sum of $15,576.24 for a period of 12 years whereby the
company will be earning in 9% for the total cash flows that will be incurred by the
company.
d) If the interest rate or the discount rate will be 10% instead of the 9% then the total annual
payment that the company needs to repay will be around $14,670.43.