What will be the annual payment? 12. A firm is considering leasing an equipment worth N2 million for whichit will be required to make 20 equal end-of-year instalment payments. Ifinterest is at the rate of 15%, what will be the annual payments?A. N19,523.00B. N122,201.00C. N300,000.00D. N319,525.00

To determine the annual lease payment, we use the annuity formula for calculating the equal payments…

Answered: 12. A firm is considering leasing an…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 15PROB

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7. What is the minimum interest rate of a company should accept, if it is support and finance an energy saving program that saves P20,000.00 per year over its useful life of 10 years, if the initial cost is P112,000.00? a. 10% b. 12 % c. 17% d. 20%
a) How much should you invest at 12% interest today if you want to receive TK. 10,000 at the cnd of 3rd year; TK. 20,000 at the end of Sth year; and TK. 25,000 at the end of 7th year if interest is compounded continuously? b) A company is thinking of acquiring fixed assets worth TK. 10 million on financial lease for five ycars at an interest rate of 12%. The lcase would be amortized over five years by equal annual installments. You are required to calculate annual installment and show how lease is amortized over five years if installment is paid at year cnd or at the beginning of the year.
What is the rate of return (the interest rate) on an investment today of $30,626.24 if the company expects to receive $45,000 in 5 years? а. 9% O b. 8% С. 6% d. 7%
1. What is the future worth 6 years from now of a present cost of P175,000 to Corning, Inc. at an interest rate of 10% per year?
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Q.13: You are offered an investment that requires you to put up $12,000 today in exchange for $40,000 15 years from now. What is the annual rate of return on this investment?
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Q1. A machine costs the company K98,000 and its effective life is estimated to be 12 years. If the scrap realizes K3,000 only, what amount should be retained out of profits at the end of each year to accumulate at compound interest at 5% per annum? Q2. A mortgage of K200,000 is to be repaid over a 25 year period at a fixed interest rate of 4.5 %. Calculate the monthly repayments.
am. 113.
i will 10 upvotes urgent An investment of 100000 pesos yields 36238.49 pesos at the end of the 3rd year, 43774.27 at the end of 6th year, and 75085.50 pesos at the end of 10th year. What is the rate of return on the investment?

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12. A firm is considering leasing an equipment worth N2 million for which it will be required to make 20 equal end-of-year instalment payments. If interest is at the rate of 15%, what will be the annual payments? A. N19,523.00 B. N122,201.00 C. N300,000.00 D. N319,525.00