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COURSEWORK - Questions
Year
2015
Exam Sitting
Subject
Weightage
BUSINESS MATHEMATICS
30%
Submission Date
APRIL
Regulations
A. Late Submission
B. Deliverables
Students must submit all materials supporting their coursework listed in the
deliverable section.
The coursework must be done individually and must be entirely your own
work. Please make sure that you are aware of the rules concerning
plagiarism. If you are unclear about them, please consult your program
coordinator/lecturer.
Plagiarism is presenting somebody elses work as your own. It includes: copying
information directly from the Web or books without referencing the material;
submitting joint coursework as an individual effort; copying another students
coursework; stealing coursework from another student and submitting it as your
own. Suspected plagiarism will be investigated and if found to have occurred will be
dealt with according to the procedures set down by the university/college.
The coursework should exhibit formal research skills i.e. with a table of
content, proper citations, references, and appendixes.
You should bind your coursework with the coursework cover as the 1st page.
PROGRAMME : DIA/DIBA/DHRM/DIM
COURSEWORK - Questions
Question 1
Suppose that you are to invest RMXX thousand in the airlines business that guarantees
you cash flow and relevant costs at the end of each year as indicated in the table below.
Year
2020(1st year)
2021(2nd year)
2022(3rd year)
2023(4th year)
2024(5th year)
(a)
Cash Flow
45% of your investment
39% of your investment
26% of your investment
13% of your investment
9% of your investment
Cost
3% of your investment
5% of your investment
6% of your investment
4% of your investment
2% of your investment
(b)
(c)
Assume the discount rate is 5%, find the Net Present Value (NPV).
(6 marks)
(d)
Calculate the Net Present Value (NPV) using a 20% discount rate.
(6 marks)
(e)
Plot the annual present value calculated from part (c) and (d) on the same graph.
(6 marks)
(Total: 30 marks)