T218 Financial Management Assignment: Comprehensive Financial Analysis

This document contains a detailed solution to a financial management assignment. The assignment covers several key financial concepts including a two-period certainty model, where the consumption possibilities of an individual are analyzed given their income and the interest rate. It also includes an annual equivalent cost (AEC) problem, comparing the costs of two vans over their lifespans to determine the most economical option. The solution further addresses the valuation of interest-bearing securities, specifically unsecured notes, considering deferred interest payments and required returns. Additionally, the assignment explores time value of money, deferred annuities, and loan repayment calculations, including the determination of monthly payments and effective annual interest rates. Finally, the document provides an analysis of alternative investment choice techniques, using payback period and other methods to evaluate mutually exclusive projects.