g) Find the present value of Ugx 120,000 payable in 5 years' time, assuming that an investment rate of 10 per cent , compounded annually, is available;
g) Find the present value of Ugx 120,000 payable in 5 years' time, assuming that an investment rate of 10 per cent , compounded annually, is available;
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:g) Find the present value of Ugx 120,000 payable in 5
years' time, assuming that an investment rate of 10 per
cent , compounded annually, is available;
h) A piece of equipment purchased at ugx. 750000
depreciates at a constant annual rate of 10% for the first
2 years, then, at a constant annual rate of 4% for 4 years
and it depreciates at a constant annual rate of 2%
thereafter. Compute the price of the machine after 10
years.
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