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The Flotsam Jetsom Boating company recently had a flood and is in need of repair to some of its docking stations in Florida

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1. The Flotsam Jetsom Boating company recently had a flood and is in need of repair to some of its docking stations in Florida. They are projecting an initial investment value of $50 million total Additionally, they expect to gain $10 million in Year 1, $13 million in Year 2, $16 million in year 3, $19 million in Year 4 and $22 million in Year 5. Your task is to find the payback period with uneven cash flow.

2. What is a loss for taxation purposes according to Division 36 of the ITAA (1997).

3. CSL Ltd has debts of $45,000 due in two years’ time and $230,000 due in seven years’ time. Given an interest rate of 6.12% p.a. compounding monthly, what single payment five years from today would extinguish both obligations?