BUSINESS FINANCE.docx - KCA UNIVERSITY BUSINESS FINANCE CAT...

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KCA UNIVERSITY BUSINESS FINANCE CAT Answer all questions 1. XYZ limited has project which is expected to yield the following cash flows:YearsCash flows1-410,0005-1115,00012-1720,00018-Infinity30,000The annuity between year 5-9 is received at the beginning of each period. The cost of capital is 12%. Calculate the present value of the differential annuities using the two approaches. (15 mks)2.Upendo ltd wishes to take advantage of the new commercial paper now popular. It wishes to issue two debenture

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