Differences between fund flow and cash flow

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1. Critically evaluate various approaches to the financial management.

 2. What are the differences between fund flow and cash flow?

3. (a) What is the present value of a perpetuity of $100 per year if the appropriate discount rate is 7%? If interest rates in general were to double and the appropriate discount rate rose to 14%, what would happen to the present value of the perpetuity?

(b) Your company is planning to borrow $1 million on a 5-year, 15%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal?

Reference no: EM131044983

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