Q1- Omer purchase a new equipment to be used in his recently established factory. If the equipment can generate a yearly income AED100, 000, how much should be the price of the equipment to breakeven in 8 years for interest rate = 8%.

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
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-You need to draw cash flow diagrams
-You need to write your name and student number, course name, semester, instructors at
the top of your paper
Q1- Omer purchase a new equipment to be used in his recently established factory. If the
equipment can generate a yearly income AED100, 000, how much should be the price of the
equipment to breakeven in 8 years for interest rate = 8%.
Q2-Julie started from today and deposited AED 10,000. She will keep depositing this 10, 000
every year and for 12 years. Knowing that the interest rate is 5%, how much the amount
that she can withdraw after 12 years to clear her account in the bank.
Transcribed Image Text:Assignment Content -You need to draw cash flow diagrams -You need to write your name and student number, course name, semester, instructors at the top of your paper Q1- Omer purchase a new equipment to be used in his recently established factory. If the equipment can generate a yearly income AED100, 000, how much should be the price of the equipment to breakeven in 8 years for interest rate = 8%. Q2-Julie started from today and deposited AED 10,000. She will keep depositing this 10, 000 every year and for 12 years. Knowing that the interest rate is 5%, how much the amount that she can withdraw after 12 years to clear her account in the bank.
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