The annual income from the mine is P100,000 and the life of the mine is 25 years. Find the price that an investor is willing to pay for if he considers that money is worth 5% and if he is to accumulate a sinking fund at 7% in order to replace the capital he invested?

Q: ,what is the NPV of this​ investment?

A: Net Present Value: It is a measure of profitability and shows the absolute profit or loss made from…

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A: Total capitalised cost include the initial cost of investment and the present value of annual cost…

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A:

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A: Final Value after 9 years = $15,000Initial Value = $8,700Number of years (n) = 9

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A: Capital budgeting is a tool for the decision-making of the project, With the help of the concept of…

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A: Internal rate of return(IRR) is one of the techniques of capital budgeting that take into…

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A: The time it takes to repay the cost of an investment is referred to as the payback period. It is…

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A: This is problem of future value of growing ANNUITY and can be done using formula. Future value of…

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A: Capital is a term for financial asset, such as funds held in deposit accounts and/or funds obtained…

Q: An investor is asked to invest in a project as follows Invest RS 000 now, at year 1, invest a…

A: IRR is the rate at which Present Value of cash Inflows is equal to Present Value of cash Outflows .…

Q: rate is 6%,

A: Capitalized cost of house = Cost of construction + Present value of maintenance cost

Q: comma 900 in one year. If your cost of capital is 7.6 %, what is the NPV of this investment?

A: The net present value calculation aids in determining whether an investment will yield a higher…

Q: You have an opportunity to invest $ 108 000 now in return for $ 79500 in one year and $ 30 comma 300…

A: The objective of this question is to calculate the Net Present Value (NPV) of an investment…

Q: 4. Estimates indicate that a timber tract will yield an annual profit of P5,000,000 for 10 years,…

A: Maximum price that can be paid would be the present value of annual profits and present value of…

Q: You have an opportunity to invest $106,000 now in return for $79,300 in one year and $29,100 in…

A: Data given: Initial Investment ($) = 106,000 Cash flow(Year 1) = $ 79300 Cash flow (Year 2) = $…

Q: A capital investment of Php 508,000 on a project can produce an annual revenue of Php 383,000 for 5…

A: Capital Investment = 508,000 Annual Revenue = 383,000 Investment is mentioned as 508,000 Salvage…

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Q: What does the IRR rule say about whether the investment should be undertaken? What about the NPV…

A: Capital budgeting is a fundamental financial procedure in which organizations evaluate and select…

Q: Now, I want you to answer these; a) If the value of investment is P250, 000 yielding an interest of…

A: Future value of investment can be calculated using FV function in excel. FV (rate, nper, pmt, [Pv],…

Q: Peaceful Cruises wants to build a new cruise ship that has an initial investment of $300 million. It…

A: Note : As per guideline we can solve only one question at a time so kindly post the other questions…

Q: An investor has an opportunity to invest in a rental property that willprovide net cash returns of…

A: Calculation of the present value of the cash return is shown below:

Q: Harry Dukee has been presented with an investment opportunity which will yield end of year cash…

A: Net Present Value: It represents the absolute profitability of a project or an investment in…

Q: What is the ARR of a project investment of 1 million pesos of machinery with a life of 10 years and…

A: Accounting Rate of Return (ARR) = Average Net Profit / Average Investment

Q: A tract of land is expected to net $45 per acre from now into the foreseeable future. Assume that…

A: Initial investment is $250000 A Tract of land is expected to be $45 r(real)=0.06 i(real)=0.05 NP=30…

Q: Advice Jane which project should be invested on and why?

A: Information Provided: Discount rate = 7%

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Q: The JLK Corporation is considering an investment that will cost RM80,000 and have a useful life of 4…

A: Payback period is the time taken to recover the initial investment

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A: Implied rate of return Implied rate of return helps investors understand the return on investment…

Q: AAAs have option to invest in Company's BBBS newly constructed Condo. The WACC is 6%. The required…

A: Net present value is the difference between the present value of cash flow and initial investment.

Q: Puan Jasmin is considering a project that requires an initial investment of RM120,000 and this is a…

A: The payback period is the time to recover the cost of investment. Simply said, it is the amount of…

Q: A man invests in a project that requires a fixed capital of P 2.5 M with no salvage, and life of 12…

A: The gain or loss on an investment in relation to the initial investment is referred to as the rate…

Q: The annual maintenance costs of a tunnel, which is considered to have an infinite life, are worth…

A: Capitalized cost can be defined as that cost which is regularly added to the original cost of a…

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A: The question is based on the concept of Cost Accounting. Net present value is the difference between…

Q: Bills Corporation is contemplating on a project. It has an initial investment of Php5 Billion and…

A: Initial investment = Php5 billion Cash flow after 5 years = Php7 billion Cost of capital (r) = 0.105…

Q: You are considering investing in a project which will last four years. You will invest £500,000 at…

A: Net present value is the difference between present value of cash inflows and outflows.