May 2017 Q2 b.

Required:
Determine the most preferred business opportunity if:

[ NB: You are required to discount these future sums by using the interest rate of 8%. ]

i) GH¢7000.00 is paid in 4 years’ time.                                                                                                                             (7 marks)

ii) GH¢8000.00 is paid in 6 years’ time.                                                                                                                             (7 marks)