2. Profits from recycling paper, cardboard, aluminum, and glass at a liberal arts college have increased at a constant rate of Php55000 in each of the last 3 years. If this year's profit (end of year 1) is expected to be Php30000 and the profit trend continues through year 5, what is the present worth of the profit at an interest rate of 8% per year? A Php525.26k Php405.48k C Php199.78k Php285.70k

2. Profits from recycling paper, cardboard, aluminum, and glass at a liberal arts college have increased at a constant rate of Php55000 in each of the last 3 years. If this year's profit (end of year 1) is expected to be Php30000 and the profit trend continues through year 5, what is the present worth of the profit at an interest rate of 8% per year? A Php525.26k Php405.48k C Php199.78k Php285.70k

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: How much money can a production company that makes fluidized bed scrubbers spend now instead of…

A: In this question, we are presented with a scenario involving a production company that manufactures…

Q: Suppose you had ₱100 in a savings account and the interest rate is 20% per year and you never…

A: Here, given information is, Present value (P): ₱100 Interest rate (r): 20% per year Time period…

Q: Switching to powder coating technology will reduce the emission of volatile organic carbons (VOCs)…

A: The rate of return produced by a project when the Net Present Value is zero is known as the Internal…

Q: Pls do fast

A: A1 = $1500 n1 = 6 years In year 9 - OTD - $3500 In year 11 - OTW - $2500 From year 12: A2 = ? n2 =…

Q: A saving plan allows people to invest after-tax money without being taxed on any of the gains. An…

A: To calculate the amount in the account immediately after today's deposit, you can use the formula…

Q: you applied for a loan with a bank and the Php 80 000 was approved at an interest rage of 14% of…

A: GIVEN, money received = 80000 money paid = 68800

Q: . For the given CFD, the withdrawal has been arranged through a 5-year at $2,000 per year, starting…

A: The given cash flow series can be divided into two types of cash flow series, i) there is a uniform…

Q: A cash flow sequence starts in year 1 at $4000 and decreases by $300 each year through year 9 The…

A: Each year, Cash flow decreases by $300.

Q: Inc lass Excercise Савствање PPW = ? 5000 PW=? 5000t (2) 1 Soool (3) Son 2 Pw=n G 9=7%, i=15% 7 500…

A: The Present Worth Analysis is one of the techniques used to assess the project options. The worth of…

Q: 135 TAA 900 900 900 10 0 2 4 1200 1500 1800 2100 On the cash flow diagrams above, the x-axis shows…

A: The following formula is used to calculate present value factors (PVF): PVF = 1/(1+i)n

Question

2. Profits from recycling paper, cardboard, aluminum, and glass at a liberal arts college have
increased at a constant rate of Php55000 in each of the last 3 years. If this year's profit (end
of year 1) is expected to be Php30000 and the profit trend continues through year 5, what is
the present worth of the profit at an interest rate of 8% per year?
A
Php525.26k
B
Php405.48k
Php199.78k
D
Php285.70k

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

You decide to save slightly less than that and save $600 a month to invest into a retirement account promising an annual return of 4% from when you start working at 24 until you retire at 64 years young. How much will you have in your retirement account when you retire? Saving slightly less than the 16 % annual income of 46000or 613.33 per month
Please find PW (present worth) for all the cash flow diagrams in the attached picture below: FOR PART 3
A company is planning to replace single-use plastic packaging to sustainable ones. This replacement process will cost the company $50,000 three years from now. How much money must the company set aside each year beginning now (year 0) in order to have the total amount available immediately after making the last deposit at the end of year 3? Assume the company can invest its funds at 15% per year. a. $10150 O b. $10015 O c. $10000 O d. $10500
. Find the amount at the end of two years and seven months if Php 1,000 is invested at 8% cq using simple interest for any time less than a year interest period.
A cash prize was invested 5 years and 5 months ago at 12% compounded semi-annually for a puzzle that has remained unsolved until today. What was the original prize if the fund now contains ₱89,250?
The Pedernales Electric Cooperative estimates that the present worth now of income from an investment in renewable energy sources is $21,000,000. There will be no income in years 1 and 2, but in year 3 income will be $425,000, and thereafter it will increase according to an arithmetic gradient through year 15. What is the required gradient if the interest rate is 15% per year? Solve using factors. What is the required gradient? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
A farmer hires 5 men to clear his ranch from grasses and bushes for 5 days. He pays PHP 350.00 for each of them per day. He projects that in the succeeding years, his expense will decrease by 10% every year. What will be the present value of these payments for the first 10 years. If I = 15%? Provide the Cashflow diagrams.
Suppose your parents have decided that after your graduation at the end of the year they would start to save money to help pay for your younger sister to attend University to study Food Process Engineering. They plan to save money for 5 years before she starts college and to save during her university years. They plan to contribute GH¢4,000 per year at the start of each of her 4 university years. Your parents would thus make monthly payments for 8 years, 5 year prior to and 3 during your sister's university education. The monthly interest rate earned on their savings is 0.45%. How much must the monthly savings be under this condition?
Suppose you had ₱100 in a savings account and the interest rate is 20% per year and you never withdraw money or interest payments. After 5 years, how much would you have on this account in total?A. More than ₱200B. Exactly ₱200C. Less than ₱200
am. 112.
A total of Php 5,000 is invested at a simple interest rate of 6% for 4 months. How much interest is earned on this investment?