A construction company has a bank account fund with a net value of $2,500,000. The company plans to withdrawal rate is $165,000 per year starting 1 year from now. How many years will it take to completely deplete the fund if the conservatively managed fund grows at a rate of 4.5 % per year? a. Draw the cash flow diagram from the bank's perspective  b. Calculate the number of years to deplete the funds.

Q: What lump sum of money must be deposited into a bank account at present time so that $1,50 can be…

A: In this we have to calculate present value of cash flow withdrawal.

Q: What is the future worth of P1,000 if it is invested at 12% compounded annually for the first year,…

A: Because you have multiple questions , we will answer the first question only, for the remaining…

Q: How much money should be deposited each year for 5 years starting 1 year from today, if you wish to…

A: The amount required to withdraw is $9889 for 9 years The rate of interest is 12% per year

Q: How long will Mr.Andi's account have value in the future of IDR 3,000,000 at a rate of return of 6%…

A: Mr. Andi invests money IDR 100,000 annually and it has been assumed that the deposit is made at the…

Q: rate of 4% compounded annually, how much should he deposit? ) Please show your work, your cash flow…

A: Present Worth: It is the present value of future cash flows. The present worth is computed by…

Q: The financial manager has estimated a cost of P40 per transaction in case non-cash asset is…

A: Optimum cash balance is that optimum stage where the total cost of cash is minimum.

Q: The XYZ customer service branch maintains a disbursement account which is funded by the main office.…

A: "Cash management" refers to the optimal use of cash to ensure maximum liquidity and profitability.…

Q: Wyatt Widgets has an expected cash flow of $4,500,000 and the standard deviation of the cash flow is…

A: Here's a breakdown of the key concepts involved:Liquidity Risk: This refers to the risk of a company…

Q: Lemon’s evaluation of its cash outlay required indicates that it needs 200,000 for the year.…

A: The question is based on the concept of optimal cash level in a business by use of the Baumol model…

Q: Depict the following transactions on a certain cash flow diagram: • Depositing $4,000 today and…

A: A cash flow diagram is a representation of cash inflows and cash outflows over a specified period of…

Q: The maintenance costs of a car increase by $200 each year. This cash flow pattern is best described…

A: Geometric Series: In geometric series, the payment is spaced uniformly from one period to the next…

Q: a. Draw a cash flow diagram for the buyer's perspective. b. What is the future value of the…

A: Cash flow diagram from the buyer's perspective.

Q: A company must make a choice between two investment alternatives. Alternative 1 will return the…

A: Step 1: Future cash flows are discounted to some extent depending on the discount rate, and the…

Q: xyz corporation has a lower and upper limit for its savings account at 40,000 and 70,000…

A: The Miller-Orr Model: The Miller-Orr Model is widely used in the management of cash in an…

Q: You just purchased a concrete mixing machine and wish to set aside enough money in a bank account to…

A: Cash flow diagram: It is a diagrammatical representation of the income & expenses of an…

Q: You have just assessed a project, involving an immediate cash outflow followed by a series of cash…

A: NPV  is defined as the sum of the present values of all future cash inflows  less the sum of the…

Q: You are given some cash flows for Years 1-5, but are trying to find the missing value for Year 3.…

A: Present value is the current date value of the future cash flows discounted at the interest rate for…

Q: A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and…

A: According to bartleby guidelines , if multiple questions are asked , then 1st question needs to be…

Q: A civil engineer starts investing his money when he graduates from college. He is able to afford…

A: Discounting is a technique to compute the present value (PV) of future cashflows by using an…

Q: Comparing Cash Flow Streams: You’ve just joined the investment banking fi rm of Dewey, Cheatum, and…

A: SOLUTION- GIVEN THAT, INTEREST RATE = 10% PER ANNUM COMPOUNDED MONTHLY = 0.83% PER MONTH ( 10% /12)…

Q: ntant and the latter provided a cash budget for the next year. According to the computations, the…

A: Given: To calculate the optimum, average cash balance, conversion number and total cost is given as,

Q: How much money should be deposited each year for 5 years starting 1 year from today, if you wish to…

A: Periodic annuity amount refers to the sum required to be deposited in the account on an annual basis…

Q: A company deposited $5,500 into an investment fund at the beginning of every quarter for 5 years. It…

A: Annuity value is calculated by taking series of cash inflows over the period of time with interest…

Q: Illustrate the cash flow diagram. An investor bought a jaw crusher worth P25,000.00 with an expected…

A: Cash flow:The circulation of funds through and out of a person's or company's finances is referred…

Q: XYZ Corporation has annual cash demand of 3,000,000 for a fund set aside for operating expenses. The…

A: Optimum cash balance: It is the balance wherein the cost of depositing the fund is minimum if we…

Q: Cash flow X has streams of cash flow of RM1,350 per year indefinitely. With 14% interest rate, what…

A: Because you have posted multiple questions, we will answer the first question only, for the…

Q: (Present value of complex cash flows) How much do you have to deposit today so that beginning 11…

A: The PV of cash flows refers to their values after they have been discounted at an assumed rate. It…

Q: c. Use arrows to demonstrate, on the time line in part b, how discounting to find present value can…

A: NPV or Net present value method is a capital budgeting method to compare any two or more similar…

Q: A small company wishes to set up a fund th can be used for technology purchases over the next 6…

A: When the annuity amount is growing at a constant rate, present value of growing annuity formula is…

Q: What lump sum of money must be deposited into a bank account at present time so that $1,500 per…

A: Semi annual withdrawal = $ 1500 Period = 10 Years Number of withdrawals = 10*2 = 20 First withdrawal…

Q: A cash flow sequence starts in year 1 at $5,000 and increases by $200 each year through year 10.…

A: present value is the value of the future cash flow discounted to today.

Q: Your banker has analyzed your company account and has suggested that her bank has a cash management…

A: Step 1 We will first find the cost of funds saved by reducing the float days as per the question.…

Q: Cardo borrowed money from a local cooperative. He received P18,420 but promised to pay P20,000 in…

A: N = 0.5 years Present Value = 18,420 Future Value = 20,000

Q: Ronnie's Coffee House is considering a project which will produce sales of $6,000 and increase cash…

A: Operating cash flow refers to the cash generated through the operating activities of the business by…

Q: Paradise Retailers, Inc. (PRI) determined that $1,500,000 is needed for cash transactions made…

A: Baumol model is the cash management model that helps in managing the excess funds by using optimum…

Q: A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and…

A: An annuity is a payment series that pays a periodic sum to the holder. It is extensively used in…

Q: Depict the following transactions on a certain cash flow diagram: • Depositing $4,000 today and…

A: Deposit = $4,000 Withdrawal after 2 years = $2,000 Remaining Withdrawal = 4 years   Interest Rate =…

Q: You plans to withdraw $150,000 at the end of every year from this accout.To prevent overwithdrawal…

A: Bonds refer to a fixed-income instruments issued by companies to the investors. Bonds act as a debt…