A company buys a solar panel unit for P105,000. The shipping and installation fees amount to P15,000. If the unit is expected to last for 15 years, with a salvage value of P3,000, what is the depreciation charge during the 12 th year, and th

Q: Tyrone Company wants to purchase a property that costs $150,000. The full amount needed to finance…

A: Present Value = $150,000Interest rate = r = 12%Time = t = 6 years

Q: A property has a FMV of $7,500,000. If the property owner can only secure a loan with an LTV of 70%,…

A: Variables in the question:FMV=$7,500,000Loan amount=70% of FMV=70% x $7,500,000 =$5,250,000N=30…

Q: parcel of land can be leased for a period of 10 years. Initial development costs for clearing,…

A: The question is based on the concept of Present value and Annuity in Financial Management.

Q: XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase…

A: The amortization schedule gives information to the lender and borrower about the loan payments due…

Q: The NOI for a small income property is expected to be $155,400 for the first year. Financing will be…

A: Variables in the question:NOI155400DCR1.2Rate of interest10%Amortization period20Capitalization…

Q: Hyundai Motor Co. plans to set aside an annual payment of $18,000 per year for 4 years for…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: A piece of machinery may be acquired by making an immediate payment of $250,000 and payments of…

A: Net present value is a capital budgeting metric used to evaluate the value of the net cash flows in…

Q: The NOI for a small income property is expected to be $156,000 for the first year. Financing will be…

A: Capitalization rate, often referred to as the cap rate, is a financial metric used in real estate to…

Q: A certain piece of equipment has a list price of $120,000.  The manufacturer offers two options for…

A: Option A: Cost of Equipment = $120,000 Down payment = $20,000 Loan amount = $120000-$20000 = $100000…

Q: The NOI for a small income property is expected to be $152,100 for the first year. Financing will be…

A: Here, NOI is $152,100 DCR is 1.2 Interest Rate is 10% Amortization Period is 20 years Increase in…

Q: A parcel of land can be leased for a period of 10 years. Initial development costs for clearing,…

A: Initial cost (C) = P 250000 First year revenue (R) = P 22000 Growth rate (g) = 5% n = 10 years r =…

Q: A manufacturer needs to borrow money to purchase a building. The purchase price of the building is…

A: given, purchase price = $1.5 million = 1500,000 downpayment = $300,000 rate =4.85% n =20 years

Q: A company buys a color printer that will cost $ 17,000 to buy, and last 5 years. It is assumed that…

A: Cost = $17,000Period = 5 YearsCost of Captial = 8%

Q: An owner can lease her building for 100,000 per year for three years.aThe explicit cost of…

A: Calculation of accounting profit and economic profit are as follows

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.