The company must make $ its investment plus a return of 15% per year. million annually in years 1 through 8 to recover

Q: A person has 80,000 in a savings account that earns interest at 7% per year, compounded annually. If…

A: Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate 80,000=12000[1-(1.075)^-time…

Q: equivalent annual cash flows of $400,000 for the first 5 years. If the cash flow in year 1

A:

Q: Kofi and Nana made two investments of $25,000 and $40,000 with different investors that yielded a…

A:

Q: A customer deposits his money in a bank for 10 million dollars for 2 years. If the deposit interest…

A: The value that depicts the value of the asset at a date in the future based on the rate of growth is…

Q: 3. Two years ago, ASARCO, Inc. invested P580,000 in a certificate of deposit that paid simple…

A: An amount was invested for simple interest two years ago. Now that accumulated amount is invested…

Q: A successful alumnus gives CBU $5,000,000 to establish an endowed scholarship fund. If CBU can…

A: Step 1: Given Value for Calculation Present Value of Payment = pv = $5,000,000Interest Rate = r =…

Q: a contractor buys an excavator for $250000 which provides an income of $35000 per year for a period…

A: Step 1: Identify the given valuesStep 2: Use the PVIFA formulaStep 3: Calculate (1 + i)^(-n)Step 4:…

Q: Mr. Doe borrowed $1000 from his bank at 8% per year, compounded annually. He can (i) repay the $1000…

A: Given, Net amount- $1000 Interest- 8% Time- 8 years

Q: 2. For the rates a through d below, what are the effective annual rates? For e, what is the…

A: The interest rate that accounts for compounding over a specific time period is called the Effective…

Q: A bank is offering an interest rate of 3.50% per year, compounded every 3 months. What is the…

A: An effective annual interest rate is the genuine profit from a bank account or any interest-paying…

Q: For the cash flow shown, determine the value of G that will make the future worth at the end of year…

A: #

Q: series of 10 end of year deposits is made that begins with $6500 at the end of year 1 and decreases…

A: Present worth represents the current value of a future amount of money, considering the time value…

Q: don't use excel only formula used.   For an interest rate of 8% per year compounded quarterly,…

A: The objective of the question is to determine the number of times interest would be compounded in…

Q: for a firm's production process. The initial cost $200,000 with annual costs of $50,000 and saving…

A: Given that,Annual cost = $50,000Savings = $90,000 and increment by $3,000 (G) after…

Q: Consider the following schedule of cash flows. If interest is 4% per year, compounded continuously,…

A: here we calculate the equivalent value of the cashflow by using the given cashflow so calculation as…

Q: 2. If a Plastics company purchases a new building now for $1.3 million for its corporate…

A: The amount that a present investment will increase in value over time when kept in a compound…