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Calculate the present value of the cash flows

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Reference no: EM133185334

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Q1. How long would it take for Tebogo's investment of R10 000 to grow to R20 000 if it earned 8% interest per annum?

1. 1.82 years

2. 1.99 years

3. 2.0 years

4. 9.01 years

Q2. ONLINE Ltd must make a several payments for the rights to market their product. The proposed deal calls for R30 000 and R50 000 at the end of years 1 and 2 and annual year- end payment of R65 000 in years 3 through to 5. A final payment of R35 000 would be due at the end of year 6. Calculate the present value of the cash flows, assuming the required rate of return is 12%.

1. R100 675.72

2. R117 782.90

3. R126 107.89

4. R268 649.69

Reference no: EM133185334

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