Q.4 A company is planning to expand its business after 5 years from now. The expected money required for the expansion program is $50 000 000. The company can invest $5 000 000 at the end of every year for the next five years. If the assured rate of return of investment is 10% for the company, check whether the accumulated sum in the account would be sufficient to meet the fund for the expansion program. If not, find the difference in amounts for which the company should make some other arrangement after 5 years?

Q.4 A company is planning to expand its business after 5 years from now. The expected money required for the expansion program is $50 000 000. The company can invest $5 000 000 at the end of every year for the next five years. If the assured rate of return of investment is 10% for the company, check whether the accumulated sum in the account would be sufficient to meet the fund for the expansion program. If not, find the difference in amounts for which the company should make some other arrangement after 5 years?

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Q: Question 2 5 Points For a 20-year geometric cash flow progression increasing at 2% per year, the…

Q: A man bought an eqpt costing P150k payable in 10 semi annual payments with i = 12% , determine each…

Q: The purchase cost of an excavating machine is $200,750. After a useful life of 6 years, it is…

A: Given, Present value P=200750 $ N=6 years Salvage value F= 45000 $ Interest i=12.7 %

Q: January your company purchased the following equipment. How much you depreciate for the fiscal year…

A: When the value of assets decreases uniformly over time up to its useful life, the cost of the assets…

Q: businesswoman borrowed P200,000 with interest at the rate of 6.9% compounded semi-annually. He…

Q: Two years ago, Snoop Lion deposited P15,000.00 in a fund that earns 10% interest compounded…

A: Given Interest rate = 10% compounded semiannualy 15000 deposited 2-years ago 10000 deposited today…

Q: 12. Determine the present worth of a geometric gradient series with a cash flow of $50000 in year 1…

A: Answer We are given Cashflow of year 1 = $50000 rate of increase per year = 6% Interest rate per…

Q: A student has a job that leaves her with $550 per month in disposible income and wants to purchase a…

A: The values given in the question are as follows: Disposable income=$550 per month Monthly…

Q: The principal sum P is invested at nominal interest rate r, compounded m times a year, for n year.…

A: P - principal sum r - interset rate n - time (year) m - compounding times a year A - amount at the…

Q: A small company purchased now for 1.15M will lose 75,000 each year for the first 4 years. An…

A: Cash flow diagram refers to a diagrammatic representation of cash outflow, cash inflow, income and…

Q: A condominium unit can be bought at a down payment of ₱150,000 and a monthly payment of ₱ 20,462 for…

Q: bought an equipment costing P60,000 payable quarterly payments each installment payable at the…

A: The amount is 7371.911/-

Q: Engr. Secula wanted to retire in 20 years with ₱1.5 million. How much must he save annually starting…

A: Given that: Future Worth, F = ₱1.5 million = ₱1500000 Time period, n = 20…

Q: king capitál óf P2 ed capital investme

A: Given:- Fixed capital investment=P10,000,000 Working capital=P2,000,000 annual depreciation=10% To…

Q: By the conditions of the will, the sum of 35,000 is left to a 12 year old girl to be held in a trust…

Q: now much must be invested?

A: Compound interest calculations:

Q: A man has deposited $50 000 in a retirement income plan with a local bank. Thisb ank pays 9% per…

A: This is problem related to Estimation costing and valuation Engineering. In this given initially…

Q: Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years.…

Q: 23. An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at…

Q: ECON A house and lot costing P2 million was bought at a down payment of P500,000 and P1 million…

A: To find the required payment at the end of the third year on the remaining balance of a house and…

Q: A machine costing P720,000 is estimated to have a life of 10 years. If the annual rate of…

Q: A contract has been signed to lease a building at P250,000 per year with an annual increase of…

Q: Practice Problem Set No. 4: (Continuation) Problem 4: If money is worth 8% compounded quarterly,…

A: L

Q: Please do not SOLVE using EXCEL. Solve it using Manual Computation Determine the maximum future…

A: Given data, Yearly annuity = X Annuity period = 10 years Withdrawn after = 20 years Effective…

Q: man inherited regular endowment of P111,000 every end of 3 months for 12 years. however, he may…

Q: the

A: Given:- Main price=P Return price=2.59 times of initial price Time (t)=15 years We have to find…

Q: 4. Find the effective rate of interest if the nominal rate is 12 % compounded bi - monhtly.

A: Given data- Nominal rate of interest i=12%To Find-The effective rate of interest R

Q: Compute the future value of a $1500 deposit, after eight years, in an account that pays a simple…

A: Given:- The present value of the deposit = $1500 The time period of the deposit is 8 years The…

Q: Company B has a P5M loan for a new security system it just bought. The annual payment is P444,000…

A: Loan Amount (P) = 5 Million = P 5,000,000 Annual Repayment for 30 years = P 4,44,000 Rate of…

Q: Frasier is 33 years old and just received an inheritance from his parents' estate. He wants to…

Q: In an effort to pay off the loan quickly, a borrower made four payments in years 1 through 4, with…

Q: As a rental for a building, the owner received two offer: a) 50,000 a year for 80 years, the rental…

Question

Q.4
A company is planning to expand its business after 5 years from now. The expected money required for the expansion
program is $50 000 000. The company can invest $5 000 000 at the end of every year for the next five years. If the
assured rate of return of investment is 10% for the company, check whether the accumulated sum in the account would
be sufficient to meet the fund for the expansion program. If not, find the difference in amounts for which the company
should make some other arrangement after 5 years?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.

Similar questions

Your rich uncle has recently passed away and left you an inheritance in the next 30 years. You will receive $2,000 per year from year 5 through year 10, $5,000 per year from year 11 through year 20, and $3,500 per year from year 21 to year 30. At a rate of 7 percent compounded annually, what is the present value of your uncle's generosity?
5. An engineer deposits Php1M today to have an annual funding for his company for the next ten years beginning one year from now. If money is worth 10%, what is the maximum annual fund that the engineer can withdraw?
By the conditions of the will, the sum of $35,000 is left to a 12 year old girl to be held in a trust fund invested at 8% compounded quarterly. How much will she receive when she turns 18? Kindly solve this engineering economy problem. Show diagram if necessary. Thank you
A man borrowed P20,000 from a local commercial bank which has a simple interest of 16% but the interest is to be deducted from the loan at the time that the money was borrowed and the loan is payable at the end of one year. How much is the actual interest rate.
eng econ A man has deposited $50 000 in a retirement income plan with a local bank. This bank pays 8.75 % per year, compounded annually, on such deposits. What is the maximum amount the man can withdraw at the end of each year and still have the fundsl ast for 12 years?
9. A cash flow has the following income values: $100 at end of year 2, $200 at end of year 3, $300 at end of year 4, $500 at end of year 6, and $600 at end of year 7. Solve for the present value, P, of the cash flows by using only two interest factors. The interest rate is 11% per year.
Matthew's investment in her savings account matured to $5,892.79 at the end of 80 days. If the account was earning simple interest at a rate of 1.70% p.a., answer the following. a. What was Matthew's initial investment? Round to the nearest cent b. How much interest did Matthew earn? Round to the nearest cent
Jerich deposited Php 1,200 in an account that pays 4% compounded per annum for 2 years. After two years, Jerich withdrew his savings and placed in into another bank which pays 1% more for four years. What would be the total amount of Jerich's savings after four years?