### Scotty Thomson expects to receive the following stream

Question 1 (20 marks) This question relates to material covered in the Topics 1 to 3. This question addresses the 5th and 6th subject learning outcomes. For the following numerical problems, detailed answers must be shown. This involves providing a brief description of the problems, formulae used, progressive and final answers to the questions. For assignments you are expected to show your workings using the appropriate formula. (a) Scotty Thomson expects to receive the following stream of cash flows from an investment over the next 7 years: End of year Cash flow ($) 1 3,000 2 6,500 3 280 4 1,400 5 3,000 6 0 7 10,000 If Scotty’s required rate of return is 6% per annum on this investment, how much…

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