A company plans to purchase an asset in four years at a price of $180,000. How much has to be deposited now in an account that earns 8% to have enough money buy the asset in the future?

Q: You buy a new piece of equipment for $16,230, and you receive a cash inflow of $2,500 per year for…

A: The internal rate of return (IRR) is the interest rate received for investment with payments and…

Q: You have just purchased a new warehouse. To finance the purchase, you have arranged for a 30-year…

A: The calculation is:

Q: An investor invests £10,000,000 in a new factory, which takes a year to build. After construction…

A: Yield of investment refers to the return earned by the project over the investment made initially…

Q: You need to accumulate $10,000. To do so, you plan to make deposits of $1,050 per year - with the…

A: The objective of this question is to find out how many years it will take to accumulate $10,000 by…

Q: What annual rate of return is earned on a $5,000 investment when it grows to $9,000 in five years?…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: A company wants to deposit $500,000 per year in an investment which earns interest of10 percent per…

A: The value at the end of the 10 deposit is the future value of the first 10 deposits.

Q: ou want to have $1,970,000 at the end of 22 years. You have $6,000 to invest now, and you will…

A: Future value includes the amount of deposits made and the amount of compounding interest accumulated…

Q: You need to accumulate $10,000. To do so, you plan to make deposits of $1,250 per year - with the…

A: Future Value (FV) is a financial metric essential for projecting the estimated worth of an…

Q: What is the returnon an investment that costs $1,000 and is soldafter 1 year for $1,060?

A: Given information: Investment cost (purchase price) is $1,000 Sale price is $1,060

Q: The maintenance cost of a machine this year is expected to be P5, 000. The cost will increase P1,…

A: Maintenance cost at year end = P 5,000 Annual increase in cost for next 4 years = P 1000 Interest…

Q: If a down payment of P600,000 is made on a house and P80,000 a year for the next 12 years is…

A: Down payment (DP) = P600,000 Annual payment (P) = P80,000 Number of annual  payments (n) = 12…

Q: if 10, 000 is invested in a certain business at the start of the year, the investor will receive 1,…

A: The net present value is a capital budgeting metric which evaluates the worth of the project in…

Q: A company needs $350,000 to pay a debt four years from now. The company can place cash in a 5%…

A: Solution:When some amount is invested somewhere, it earns interest on it.The amount initially…

Q: An equipment is estimated to cost $300,000 four years from now and an additional $100,000 five years…

A: Introduction: Present value refers to the current valuation for a future sum. Investors determine…

Q: What is the minimum number of years that an investment costing $500,000 must return $65,000 per year…

A: The objective of the question is to find out the minimum number of years required for an investment…