**1
Determine the years purchase for 11% per annum in perpetuity **

**2
Determine the PVPMT at 11% pa for periods of 80, 60, 40, and 20 years
**

**3
What can you conclude by comparing the answers in 2 with those in 1 ?
**

**4
Determine the future value of $10 000 pa for 10 years at 9%pa **

**5
Determine the present value of cash flow in question 4 using the
PVPMT formula **

**6
Determine the present value of the cash flow in question 4 using the
PV and FVPMT formulae.**

**7
What is the present value of the right to receive $200 000 pa for 40
years at 15% pa? **

**8
Why is the sinking fund component of an investment in a depreciating
asset such as a quarry so important? **

**9
Determine the value of the following ground lease:**

**Term: 20 years**

**Remuneration rate:
4%pa**

**Replacement of
capital: 9.5%pa**

**Ground rent: $2 50
000pa**

**10
Prove the answer to question 9**

**11
How does income tax affect the rate of return on investment? How does
this apply to valuations using the dual rate method?**