Acme Bricks, a masonry products company, wants to have Php 600 000 on hand before it invests in new conveyors, trucks, and other equipment. If the company sets aside Php 80 000 per year in an account that increases in value at a rate of 15 % per year, how many years will it be before Acme can purchase the equipment? A. 3.2 years B. 4.6 years C. 6.3 years D. 5.4 years

Q: A manufacturer of video games develops a new game over two years. This costs $840,000 per year with…

A: The net present value (NPV) is a fundamental tool of capital budgeting. This tool enables investors…

Q: Acme Bricks, a masonry products company, wants to have $600000 on hand bef invests in new conveyors,…

A: As the money is deposited in the account and the money grow with time according to the interest rate…

Q: Better Friend Company chief executive officer (CEO )is looking into two options to invest so that in…

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Q: The buyer of a certain machine may pay either Php 20,000 cash down payment and Php 20,000 annually…

A: The present value is used to find the profitability of the project by finding out the discounted…

Q: net present value

A: Net present value refers to the difference between the cash inflows and cash outflows in a…

Q: A factory company has 5 years to prepare for relocating in another place. The equipment for loading…

A: Capital rate per year can be defined as the amount to be capitalized on annual basis. It is…

Q: 2. A company determines that the maximum they should pay for a new machine is $46,679. The company…

A: The objective of the question is to find out the salvage value of the machine at the end of 7 years.…

Q: company invests $2 million to clear land and plant pine trees.  The trees will mature in 10 years…

A: Annual rate of return is the profit earned on investment over the period of time as percentage of…

Q: A manufacturer of video games develops a new game over two years. This costs $840,000 per year with…

A: Net present value (NPV) is the difference between the present value of cash inflows and the present…

Q: What would be the payback period if the store's initial investment was 25 million pesos, their…

A: Pay back period one of the method of capital budgeting and this is time required to recover the…

Q: mpany purchases the machine, its cost of $276,000 will be financed with a loan at 14.8% interest for…

A: The equipment finance company pays the loan in equal installments which include the principal amount…

Q: entrepreneur wanted to open a small laundry shop. An investment of P280,654 is needed for a laundry…

A: Rate of return method: In this method the annual rate of return is calculated and the break rate of…

Q: Accounting company is planning to acquire a machine costing K500,000. Effective life of the machine…

A:

Q: A real estate investor has come to you with a deal for a property which would cost $400,000 &…

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Q: the implementation of a new system would have a payback period of 5 years while gaining Php 175,000…

A: 1)Payback period is a period which shows how much time a project takes to recover the initial…

Q: Capi of PHP 1.5M. The manufacturing company can produce an annua evenue of PHP250,000 for 7 years,…

A: If the net present value is positive than project is acceptable and if the net present value is…

Q: A young mechanical engineer is considering establishing his own small comp nvestment of P400,000…

A: concept  IF the rate of return is greater than the expected return then the project is justified IF…

Q: 3. A firm can purchase a fixed asset for a Php520,000 and will have installation cost of Php20,000.…

A: Purchase cost = Php520,000 Installation cost = Php20,000 Total initial cost = Php540,000 (i.e.…

Q: A business is generating $100,000 annually over 10 years, with a salvage value of $1,000,000 in the…

A: Use the table below: Cost 10.00%     Cash flows Year Discounted CF = Cash flow/(1+cost)^year…

Q: An equipment with an estimated lifespan of 10 years is to be bought for Php 1,500,000. It will…

A: The IRR is a useful tool for evaluating the profitability of an investment and for making informed…

Q: You are buying a machine with a down payment of $200,000 and annual payments of $40,000 per year for…

A: The present value of all cost is the net cost of all cost including the down payment and all cost…

Q: RKE & Associates is considering the purchase of a building it currently leases for $30,000 per year.…

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Q: M3

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Q: A company buys a printing machine for 21,000. It is expected for that machine to generate 3000…

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A:

Q: Python Machine Company is considering the acquisition of a large equipment to set up its factory in…

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Q: Mr. Joseph Ramos, owner of a GYM is planning to buy an equipment worth P150,000 in his business…

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Q: REQUIRED: Compute the lease rentals payable which will make the firm indifferent to the loan.

A: Cost of Machine 500000 Life 5 years     Borrowing 500000 Rate of Interest 10% Principal…

Q: DO IT IN EXCEL, AND SHOW THE FORMULAS If the company purchases the machine, its cost of $276,000…

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Q: A firm is considering the installation of an automatic data processing unit to handle some of its…

A: Purchase now = 20,000 First lease payment = 8,000 Annual increase in lease payment = 1000 N = 4…

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A: A perpetuity is a security that generates an endless source of cash flow.It is effectively an…

Q: Food Corporation of dalican wants money to construct a new granary. If the granary will cost…

A: In this we need to find out future value factor and from that we can get the quarterly deposit.

Q: A manufacturer of video games develops a new game over two years. This costs $850,000 per year with…

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Q: A neighborhood shopping center is expected to generate after-tax cash flow of $750,000 per year (at…

A: The capacity of an investment to create future cash flows, after taking into account the risk that…

Q: Imagine you are considering buying a gold deposit. It will cost $1 million per year to construct a…

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Q: invest now. He wants to calculate the equivalent value after 25 years, when he plans to use all the…

A: In this we have to calculate the future value using compounding interest.

Q: BookFinders Inc. is making a decision about investing in new technology. It currently expects to…

A: The firm is making a decision about investing in new technology. This will lead to a permanent…

Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.