Student Society Club has implemented a program to recycle all plastic drink cups used during the Annual UCSI Book's fair. Their goal is to generate RM3, 000 by annually in 5 years life of the recycle program's. Each recycled cup can be sold for RM0.02. How many cups must be recycled at the end of year to meet this goal? Assume the plastic cup usage at the end of year with the 1% interest rate and draw the cash flow diagram.

Student Society Club has implemented a program to recycle all plastic drink cups used during the Annual UCSI Book's fair. Their goal is to generate RM3, 000 by annually in 5 years life of the recycle program's. Each recycled cup can be sold for RM0.02. How many cups must be recycled at the end of year to meet this goal? Assume the plastic cup usage at the end of year with the 1% interest rate and draw the cash flow diagram.

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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The National Research Council is considering the establishment of a perpetuity to fund faculty positions at a local university. The ongoing cost will be $9500 at the end of each month. If the money can earn 6.3% compounded monthly in perpetuity, what amount to be invested now is required to fund the perpetuity? Select one: a. $301,587 b. $1,819,024 c. $160,294 d. $612,675 e. $1,809,524
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If a garden center is considering the purchase of a new tractor with an initial investment cost of $117,000, and the center expects a return of $31,000 in year one, $22,000 in years two and three, $17,000 in years four and five, and $8,000 in year six and beyond, what is the payback period? fill in the blank 1 years
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I’ve already figured out how to do this problem, but If the club doubles it’s break even membership after a year, what will it’s profit be?
A professional sports team has $1,000,000 to spend on renovations. Assume the team has a rate of return of 6%. If the team can spend the $1,000,000 on a museum demonstration of their history and honors, and this museum would generate $15,000 monthly revenue for seven years, would this be a good use of the $1,000,000? Why?
The Anderson Ltd. manufacturing company is a small manufacturer of plastic products. She needs to purchase an extrusion machine for$150,000. Anderson ltée will borrow money from a bank at an interest rate of7%over five years. The company expects its sales to be low in the first year, but will subsequently increase at an annual rate of10%. The company therefore arranges with the bank to repay the loan with payments increasing by10%per year. Determine the five annual payments. (Hint, you have to find the first payment).
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