Question 01

P $5,100.00 IT Stock Yearly Return 30%

n 1 Oil-well Venture Yearly Return 25%

Assuming He invests all in either 1 of the oppurtunity.

If Given To Colleague If Invested in IT stock If Invested in Oil-well

Month Current Worth Year Current Worth Year Current Worth

0 $5,100.00 0 $5,100.00 0 $5,100.00
1 $5,100.00 1 $6,630.00 1 $6,375.00

Oppurtunity Cost $1,530.00 Oppurtunity Cost $1,275.00

(for holding the stock for one year) (For investing for 1 complete year)

Note: Questions are done in there corresponding sheets.

 Question 02
Year Revenue Expenses Cash Flow Revenue Percentage in terms of Expenses
1 $521.00 $610.00 -$89.00 85.41%
2 $685.00 $623.00 $62.00 109.95%
3 $650.00 $599.00 $51.00 108.51%
4 $804.00 $815.00 -$11.00 98.65%
5 $929.00 $789.00 $140.00 117.74%
Total - $3,589.00 $3,436.00 $153.00 104.45%

Net Cash Flow $153.00

CASH FLOW
1 2 3 4 5

$140.00

$62.00
$51.00

Cash Flow -$11.00

-$89.00
 Question 03
Investment $1,000.00
Interest 10%

Madison
Year Current Worth
0 $1,000.00
1 $1,100.00
2 $1,210.00
3 $1,331.00
4 $1,464.10
Emily
Year Current Worth
0 $1,000.00
1 $1,100.00
2 $1,200.00
3 $1,300.00
4 $1,400.00

Difference $64.10 Hence Proved