A project has estimated annual net cash flows of $6,250 for nine years and is estimated to cost $40,000. Assume a minimum acceptablerate of return of 12%. Use the Present Value of an Annuity of $1 at Compound Interest table below.Present Value of an Annuity of $1 at Compound InterestYear10%12%15%0.9430.9090.8930.8700.8331.8331.7361.6901.6261.5282.10632.6732.4872.4022.28343.4653.1703.0372.8552.5893.3534.2123.7913.6052.9913.3266.4.9174.3554.1113.7853.6055.5824.8684.5644.1606.2105.3354.9684.4873.8376.8025.7595.3284.7724.0315.650107.3606.1455.0194.192Determine (a) the net present value of the project and (b) the present value index. If required, use the minus sign to indicate a negative netpresent value.Net present value of the project (round to the nearest dollar)Present value index (rounded to two decimal places)

Net present value of a project is calculated by deducting the cost of project from the present value…

Answered: A project has estimated annual net cash…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $90,000 in a fund paying 3% per year, with monthly payments for 10 years, if the fund contains $30,000 at the start
Given the following information, calculate the rate of return. price = $501.88time to maturity = 10 yearsannual payment = $100type = ordinary annuity
Engineering Economics (Annuity) An ordinary annuity paying P1,811 at the end of each year for 15 years, is to be converted to an annuity paying an amount at the beginning of each month for 15 years. Money is worth 10% compounded annually. Determine the Future value of the payment and the amount being paid at the beginning of each month for 15 years? note: include cash flow diagram and complete/readable solution for this problem, this is 100% upvote guaranteed
Use the following 8% interest factors. Present Value ofOrdinary Annuity Future Value ofOrdinary Annuity 7 periods 5.20637 8.92280 8 periods 5.74664 10.63663 9 periods 6.24689 12.48756 What amount should be recorded as the cost of a machine purchased December 31, 2020, which is to be financed by making 8 annual payments of $21500 each beginning December 31, 2021? The applicable interest rate is 8%. A.)$150500 B.)$228688 C.)$134308 D.)$123553
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Kerr Kompany is considering investing in a project that costs $50,000 and is expected to generate cash inflows of $20,450 at the end of each year for three years. The company requires a 11% rate of return on all new investments. Present Value of an Annuity of 1 Periods 9% 10% 11% 12% 3 2.531 2.489 2.444 2.402 4 3.239 3.170 3.102 3.037 The profitability index for this project is: A. 1.00. B. 0.80. C. 1.24. D. 1.27.
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1. Consider an annuity that pays £500 at the end of each year for 7 years. The annual effective interest rate is 7% p.a. Compute the present value of this cashflow £ 数字 Enter an answer correct to 2 decimal places Compute the effective duration of this cashflow 数字 Enter an answer correct to 2 decimal places 2. A payment of £60 will be made in 10 years. The annual effective interest rate is 6% p.a. Compute the convexity of this payment 数字 Enter an answer correct to 2 decimal places

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