A manufacturer buys a machinery for £56444 and places it in production in exactly 3 quarter-years from the time of purchase. Once in production, it can generate a net income payable continuously at the rate of £4028 per quarter-year for the first 8 years and of £17941 per year for the remaining 5 years until it is sold for £6267. Assuming an effective rate of interest of 1.2% per quarter-year is applicable for the entire period, calculate the net present value of the project in £s (correct answer=102757.62, using formulas no tables)

Q: Suppose you borrow P dollars from a bank at a monthly interest rate of r and you make monthly…

A:

Q: An account pays interest at a continuous compounded rate of 0.05 per year. Continuous deposits are…

A: Using the formula of future value of annuity we find the balance after at the end of 10 years

Q: Find the accumulated present value of a 11-year $70,000 continuous income stream that has been…

A:

Q: A bank offers a nominal interest rate of 5% p.a. Compounded monthly.One of its clients is planning…

A: The client needs to deposit £1,185.88 per month.Here's the calculation:Initial deposit: £0Number of…

Q: Suppose you put £1000 into a savings account paying an effective interest rate of 8% p.a . Interest…

A: initial principal (amount invested)annual interest rate (as a decimal) number of times interest is…

Q: Suppose $100 is withdrawn at the EOY 2026, emptying an account that earns 7% interest, compound…

A:

Q: Emmy and Jane are independent lives, both aged 60. They purchase an insurance policy which provides…

A: Given ,  Policy purchase = $50,000 i = 5% B=0.0003 C= 1.075

Q: Barbara makes a sequence of 28 semiannual deposits of the form X, 2X, X, 2X, ... into an account…

A: To find the value of X in this sequence of semiannual deposits, you can set up an equation to…

Q: Given that the annual force of interest is 6.5% during the first 4 years and 6.2% thereafter, find…

A:

Q: find the nominal rate per annum convertible monthly that pays an interest of £200 on an initial…

A: To find the nominal rate per annum convertible monthly, we can use the formula for compound…

Q: Suppose that $4000 is placed in a savings account at an annual rate of 10.8%, compounded monthly.…

A: