Indicate the formula, given and the complete solution. A VOM has a selling price of Php 500. It is expected to decline at a rate of 8 % per year due to obsolescence, what will be its selling price after 4 years by using the declining balance method? Handwritten answer please and be legible too. Thanks

Q: How long does it take (to the nearest whole year) for Php 50,000 to quadruple in value when the…

A: By rearranging a PV formula, we can solve for time period (n). Please note when doing this question…

Q: ISA is planning to spend $650,000 on a new marketing campaign. They believe that this action will…

A: Net Present Value = Present value of Cash Inflows – Initial investment in the project

Q: A pulp and paper company is planning to set aside Php750,000 now for possibly replacing its large…

A: Market interest rate(i) =10%Inflation rate (f)=4%Real interest rate =Market interest rate -Inflation…

Q: Calculate the present worth of 17.00 uniform payments of $10,800 that begin 1 year from now at an…

A: Present value refers to the discounted future cash flows at the interest rate for the given period…

Q: an company XYZ offers compounded annually. What loan company will you borrow money, then justify why…

A: Simple interest rate is the rate of interest that is being charged on the principal amount of a loan…

Q: You want to purchase a machine for your business and you are given 3 different payment schedules:…

A: Given, Three payment schedules Rate of interest is 10%

Q: If you have this offer "you will invest $200 per month for the first 45- months, where the first…

A: Internal rate of return is the exact returns that will be received from an investment. it Is…

Q: 4. A manufacturer of flashlights wants to have $750,000 available 8 years from now so that a new…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: If P12,000 is the present value of P12,600 due at the end of 9 months, then the annual simple…

A: Simple Discount refers to the discount in which the amount of interest is deducted. This is usually…

Q: A pulp and paper company is planning to set aside Php750,000 now for possibly replacing its large…

A: Inflation seems to be the gradual loss of a currency's buying value over time. It is a numerical…

Q: Park Co. is considering an investment that requires immediate payment of $28,500 and provides…

A: Payback period refers to the length of time it takes for an investment to generate enough cash flows…

Q: You are planning to save for retirement over the next 30 years. To do this, you will invest RM700 a…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: eBook Problem Walk-Through Adamson Corporation is considering four average-risk projects with the…

A: calculation is following

Q: Discount Interest Solve the following. Show solutions. Round off answers up to 2 (two) decimal…

A: Notes are issued at discount and discount depends on the time and interest rate on the note.…

Q: A.) The costs associated with a small X-ray inspection system are $50,000 now and D0 per year, with…

A: in this you have to calculate total present value of all cost.

Q: a. Calculate the following Periodic Total Returns on a 5-year investment. To your calculations,…

A: a. Calculate the total return on invest as follows: Selling Cost = 5% Total Return = NCF + Increase…

Q: A person buys a piece of lot for Php 148817 down payment and 10 deferred semi-annual payments of P…

A: Present value of investment refers to the value of sum borrowed by the person. Deferred annuity…

Q: You have a sum on money in an account, and it grows from $1,230 to $ 2,244 over a period of 5 years.…

A: The average annual rate refers to the average yearly growth or change in a quantity over a specific…

Q: 1. You are considering the purchase of an apartment building with the following information:…

A: Here: Details of Ques-1: Purchase Price is $12,500,000 Expected Year 1 NOI is $1,000,000 Expected…

Q: Zetterberg Builders is given two options for making payments on a brush hog. Find the value of X…

A: Indifferent means that both have the same present value today and both are economically equivalent…

Q: 9.4 (LG 9.2, 9.3, 9.4) An investment pays $10 000 in five years. a. If inflation is 10 percent per…

A: Since you have asked a multiple subpart question, we will answer the first three subparts for you.…

Q: annual payments of $20,000 each beginning in 25 years. How much would you be willing to invest today…

A: Present value illustrates the current value of a sum of money that will be received or paid in the…

Q: selling after one year at (i) $56; (ii) $50; (iii) $44? (Negative values should be indicated by a…

A: Rate of return is calculated as shown below. Rate of return=Cash inflows-Cash outflowsCash outflowIn…

Q: Suppose a borrower with two mortgages deffaults. At the time of the default, the first lien has a…

A: Given, balance of first lien is $200,000. Balance of second lien is $50,000. Property taxes is…

Q: 日 Problem Walk-Through Project L requires an initial outlay at t= 0 of $55,000, its expected cash…

A: Project's discounted payback period is capital budgeting technique used for making investment…

Q: You are offered the right to receive $1,000 per year forever, starting in one year. If your discount…

A: Perpetuity is constant series of periodic payments for an infinite time. The present value of a…

Q: A condominium unit can be bought at a  down payment of P150,000and a monthly payment of P10,000 for…

A: Down payment (D) = P 150000 Monthly payment (M)  = P 10000 n = 10 years = 120 payments r = 12% per…

Q: Suppose you need to pay V = 75,000 GBP in a year from now. Spot rate of GBP is 1 You do not have…

A: Hedging is the way to take opposite position in the forward or future market to avoid loss in the…

Q: What is the present value of a stream of monthly payments of 2,066 dollars each wer 6 years, if the…

A: Monthly PMT=$2066Interest rate=r=8%Number of days in month=30 daysPeriod=6yearsPeriod=n=6 x 12=72…

Q: A machine has a initial cost of Php 20,0 00. It will also require a Php 6,000 for its installation…

A: Standard declining Balance method of depreciation is an accelerated depreciation method where…

Q: Solve the following question with complete solution (do not use excel) and include cash flow diagram…

A: The monthly payment made by the borrower to the lender is referred to as a deferred annuity. The…

Q: Calculate the equivalent annual cost of the new machine if the discount rate is 14%. Note: Do not…

A: The equivalent annual cost can be used to calculate the cost. It assists in comparing the annual…

Q: Assume everything is given in n=0, CONSTANT dollars unless otherwise stated: MTA Textile INC. is…

A: The following calculations are done for MTA Textiles INC. to show the investment done in the…

Q: nuously compounded APRs). Suppose that someone came to you with an opportunity: they need $1,000 in…

A: 4 months interest rate=2.93%2 months interest rate=2.75%Money=$1000Interest amount=$6.62

Q: A major electronics manufacturer expects to generate additional revenue from its recently won…

A: Future worth is the value of the present cash flows after certain period. Due to interest that can…

Q: How long would it take R20 000 invested today at a nominal annual continuously compounding (NACC)…

A: Given, The Amount invested is R 20000 Investment goal is R30,000 Rate is 9%

Q: 6. How much is the present value of a perpetuity of P1,000 payable semi-annually if money is worth…

A: Given, amount=P 1,000Rate of  interest=5%If the rate of interest is quarterly compounded and which…

Q: An insurance firm has offered an educational plan where it promised to make single payment of…

A: Future value (F) = ₱ 500000 Initial investment (P) = ₱ 100000 n = 8 years Let r = Rate of return

Q: which is the most profitable

A: The Benefit-Cost relationship is the ratio of benefit with that of cost. The values are calculated…

Q: 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259…

A: The answer is stated below:

Q: Oakland Chips, which has a 10 percent required return (K), is considering a new extractor. Because…

A: Present Value is the current price of future value which will be received in near future at some…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.