grandmother gave you money to start saving have $7,500 begin investing in a GIC. Consider all factors in the decision. Show your work or any calculations you completed. brief paragraph, justify your decision, including a description of all factors that would affect decision. (100-200 words) gth of term Basic GIC Annual Compounding or Interest Paid Annually Interest Paid Monthly or Semi-Annually

Q: What about will be accumulated on this account in 50 years if initial investment is 500,000. 9%…

A: PV = $500,000r=9% or 0.09 (as a decimal)n=50 years

Q: A certain investment costs $3400. The investment produces income of $1500 at the end of the first…

A: Nothing is mentioned in this question with respect to the discount rates or finding the present…

Q: Determine the amount of time in years it takes 54,000.00 invested at 6.5% per annum to grow to…

A: The number of years required can be calculated with the help of future value function

Q: Maintenance cost for a small bridge expected to last for 60 years is estimated to be Php1,000 each…

A: The yearly cost of owning, operating, and sustaining an asset throughout its entire life is referred…

Q: Determine Annual worth values

A: Annual worth (AW) method is for evaluating the alternatives or investment proposals. It is the…

Q: A project has an initial cost of $35,000, expected net cash inflows of $11,000 per year for 8 years,…

A: ayback period (PBP) refers to the period or duration within which the company is able to recover the…

Q: ind the time required, to the nearest 0.1 year, for the investment to reach the desired goal: a)…

A: Money that is invested today grows in the future. This happens due to a concept called compounding.…

Q: P2000 is invested in a high interest account for one and half (1 1/2) years . the interest rate is…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: An engineering project has an investment amount of $129548 with an annual net profit of $53077 for 4…

A: Investment = $ 129548 Annual net profit = $ 53077 Period = 4 Years Interest rate = 15% Inflation…

Q: Cash Payback Period A project has estimated annual net cash flows of $22,500. It is estimated to…

A: CASH PAYBACK PERIOD : IT MEANS THAT THE EXPECTED PERIOD OF TIME BETWEEN THE DATE OF INVESTMENT , AND…

Q: An investment earns 10% annually. The present value of $10,000 to be received at the end c each of…

A: Solution:-When an equal amount is received each period at end of period, it is known as ordinary…

Q: What is the interest earned on a project that requires an initial investment of $ 10,000 and…

A: Initial investment (PV) = $ 10,000 Future value (FV) = $ 20,114 Period (n) = 5 Years

Q: An engineering project has an investment amount of $129011 with an annual net profit of $52364 for 5…

A: Investment = $ 129011 Annual net profit = $ 52,364 Period = 5  Years Interest rate = 15% Inflation…

Q: What is the IRR of an investment that costs $70,500 and pays $27,500 a year for 4 years?

A:

Q: A project get continuous stream of income with constant rate of $100 per annum from t=0 to t=4, t is…

A: We have to find the accumulated value of an annuity, sometime in future.

Q: Improvements with an initial investment cost of 67,000 TL will be made in an assembly line. Yearly…

A: Company uses capital budgeting techniques for the purpose of evaluating different projects. In the…

Q: The maintenance on a machine is expected to be ₱8984 for the second year and an additional ₱1,750…

A: Annual cost for 6 years = 1,750 Total Cost for the second year = 10,734 (8,984 + 1,750) Interest…

Q: Annual maintenance cost for a machine is P1500 this year and it is estimated there is an increase…

A: Given Information:Annual maintenance cost per year is P1500 Increment in annual cost each year is…

Q: Cash Payback Period A project has estimated annual net cash flows of $46,500. It is estimated to…

A: Payback period refers to the time period that is required to recover the initial cost. With the help…

Q: Energy efficiency of an equipment can be improved by 20% through enhanced maintenance leading to a…

A: Maximum allowable investment is the present value of fuel saving  The maximum allowable investment…

Q: n amount of $5000 was invested with an annual interest rate of 5.5% compounded monthly. Answer the…

A: Future value of amount is computed as follows:-FV = A * (1+r)nwhereFV = future value A = amount…

Q: A project costs $1200.00 at the end of the 1st year and the yearly cost increases by $400.00 every…

A: EUAC = r*NPV/1-(1+r)^(-n) here r = 8% and n is 4 years Let us first compute the NPV: Year Costs…

Q: A debt of P10,000 with yearly interest of 24% is to be amortized over the next 6 years with the…

A: Debt paid in equal annual payment from year 1 to year 6. Amortization table used to display the…

Q: An equipment is expected to cost 200,000$ to be used for 3 years, and to have an annual operating…

A: Annual worth of a project means the amount which is going to be generated by the project on an…

Q: Approximately what rate is needed to double an investment over five years?

A: In this question we need to compute the rate which will make the investment double in five years.

Q: An engineering project has an investment amount of $126379 with an annual net profit of $53949 for 6…

A: The PV of a project refers to the value of its cash flows after they have been discounted to the…

Q: Compute the payback period for a project with an initial cost of $100 and project cash flows of $10…

A: Formulas: Payback period = Initial cost / cash flows

Q: A project having a life of one year is started with initial investment of Rs. 120 lakhs with 12%…

A: The initial investment is Rs. 120 Lakhs. The initial cost of capital is 12%. The NPV is Rs. 15 Lakhs…

Q: Projects A and B have first costs of $5,000 and $9,000 respectively. • Project A has net annual…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: An annual maintenance cost of a generator is P1000 after two years and it is estimated to increase…

A: The question is based on the concept of Financial Accounting. As the cost is increasing by 10% per…

Q: A project has estimated annual net cash flows of $30,000. It is estimated to cost $192,000.…

A: Cash Payback period: Cash Payback period is the length of time in which an investment reaches its…

Q: For the investment situation below, identify the annual interest rate, the length of the investment…

A: Given, rate =8% years = 10

Q: Cash Payback Period A project has estimated annual net cash flows of $39,500. It is estimated to…

A: Payback period is the time required to recover the investment.  Cash payback period = Initial…

Q: What is the IRR for a ​$1500 investment that returns ​$300 at the end of each of the next a.7 years?…

A: IRR of a project is the discount rate which makes net present value of the project equals to zero.…

Q: The highway department expects the maintenance cost for a piece of heavy construction equipment to…

A: Maintenance Cost of highway department: Year Maintenance Cost (Annual Increase of 10%) 1…

Q: what is the internal rate of return of $10,000 investment that yields an annual benefit of $2,400…

A: Using IRR function in excel

Q: Consider a project with an initial investment of $300,000, which must befinanced at an interest rate…

A: Repayment schedule with repayment of equal principal every year is shown below: Formulation is…

Q: A project yields annual benefits of 75,000 for 10 years with 0 salvage value. It is designed to have…

A: The benefit-cost ratio shows the relationship between the total benefit that arises from a project…

Q: A four-year investment requires annual deposits of $300 at the beginning of each year. The deposits…

A: Time = t = 4Payment = p = $300Interest Rate = r = 9%Payment Type = at the beginning

Q: An investment of $3,100 is made for 4 months at an annual simple interest rate of 3.75%. What is the…

A: Simple interest is the type of interest that is calculated only on the principal amount. Simple…

Q: An asset is expected to pay a cash flow of $10 every 6 months in perpetuity with the first cash flow…

A: Future value (FV) is the worth of a present asset at a future date based on an estimated rate of…