Ozmyn has developed a prototype of a bullet- proof jacket. A supplier is considering the technology and has offered to pay Ozmyn RM30,000 in years 1,2 and 3; and RM40,000 in year 4 to 6. All payments will be made at the end of each year. [4-1, 20:32] Zakirahrashid: If Ozmyn applies a required rate of return of 10% to them, calculate the present value of this series of payments. [4-1, 20:32] Zakirahrashid: Another company has made an offer of a one- time payment of RM275,000 for the fabric. Explain which offer should Ozmyn accept.
Ozmyn has developed a prototype of a bullet- proof jacket. A supplier is considering the technology and has offered to pay Ozmyn RM30,000 in years 1,2 and 3; and RM40,000 in year 4 to 6. All payments will be made at the end of each year. [4-1, 20:32] Zakirahrashid: If Ozmyn applies a required rate of return of 10% to them, calculate the present value of this series of payments. [4-1, 20:32] Zakirahrashid: Another company has made an offer of a one- time payment of RM275,000 for the fabric. Explain which offer should Ozmyn accept.
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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[4-1, 20:32] Zakirahrashid: Ozmyn has developed a prototype of a bullet- proof jacket. A supplier is considering the
technology and has offered to pay Ozmyn RM30,000 in years 1,2 and 3; and RM40,000 in
year 4 to 6. All payments will be made at the end of each year.
[4-1, 20:32] Zakirahrashid: If Ozmyn applies a required rate of return of 10% to them, calculate the present
value of this series of payments.
[4-1, 20:32] Zakirahrashid: Another company has made an offer of a one- time payment of RM275,000 for the
fabric. Explain which offer should Ozmyn accept.
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