The following graph has plots of the net PW of an investment as functions of %-ge changes in the values of the input variables V1, V2, V3, V4 and V5 VI V2 V3 504, Vios. VS -30% -20% $200,000 $150,000 $100,000 $50,000 -10% -$50,000 -$100,000 o Present Worth 10% 20% change 50%
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- Qх 3D 100- 10Рх — 6Ру Qy 3 40- Рх — ЗРу %3D let Px = 3, Py = 5 let Px increase by 10% Ar=[Rx (1+EQx.Px) + Ry(Eov.Ps)]%A Px Ar=1.504 How to get Ar = 1.504?1. XYZ company planned that $500,000 be spent on software and hardware to improve the efficiency of the database systems. This is expected to save $10,000 per year for 10 years in energy costs and $700,000 at the end of 10 years in equipment costs. a) Write the required equation for finding the rate of return by using factors. (You are not expected to find the rate of return value) (20 points) b) Calculate the rate of return by using Excel. (10 points)A consumer's income in the current period is y = 100 and income in the future period is y'= 120. He or she pays lump-sum taxes t=20 in the current period and t'= 10 in the future period. The real interest rate is 0.1, or 10%, per period. (a) Determine what the consumer's optimal current-period and future-period consump tions are, and what optimal saving is, and show this in a diagram with the consumer's budget constraint and indifference curves. Is the consumer a lender or a borrower? (b) Now suppose that instead of y = 100 the consumer has y = 140 Again, determine optimal consumption in the current and future periods and optimal saving, and show this in a dia gram. Is the consumer a lender or a borrower? (c) Explain the differences in your results be tween parts (a) and (b).
- A labor saving device system save $2,000 per year for five (5) years. It can be installed at a cost of $8,000. The rate of return on this planned investment is most nearly: a. = 12.36% b. = 9.36% c. 10% d. i = 8%1. XYZ company planned that $500,000 be spent on software and hardware to improve the efficiency of the database systems. This is expected to save $10,000 per year for 10 years in energy costs and $700,000 at the end of 10 years in equipment costs. a) Write the required equation for finding the rate of return by using factors. (You are not expected to find the rate of return value) b) Calculate the rate of return by using Excel.You may purchase 100 shares of Mun Tee ltd on a 55 percent margin when the shares are selling at K20 each. The Lusaka stock exchange broke charges you 10 percent annual interest,and commission are 3 percent of total stock value on both the purchase and the sale. If a year later you receive a K0.50 per share dividend and sell the stock for K27. What's your rate of return on investment?
- If 2021Q4 Interest Income from the Loan Portfolio is $10MM, the EOP Balance of Loans is $600MM, and the Avg. Balance of Loans is $700MM, the Yield on Loans is:The exact simple interest of P5,000 invested from June 21, 1995 to December 25,1995 is 4. P100. What is the rate of interest? а. 3.90% с. 3.78% b. 3.88% d. 3.98%Question: Your client is asking you to design a Flux Capacitor. The Flux Capacitor is expected to cost $5,200 to build. If operations and maintenance costs are anticipated to be 15% of the build costs the first year of operation and operation and maintenance costs will increase by 6% each year after, how much will your client have invested in the Flux Capacitor after 5 years? Notes from instructor: I have had a few questions about the Econ. Assignment. I want to clarify that the 6% interest rate does not accumulate over 4 years and it is not added to the 15%. If something increases by the interest it is (1+i) each year. I recommend finding the cost of each year and then summing them up. The equation is not direct from the FE manual so this is going to best your best course of action for now.
- A man is considering investing P 500,000 to open a semi-automatic washing business in a city of 400,000 population. The equipment can wash on the average 12 cars per hour using two men to operate it and to do small amount of handwork. The man plans to hire two men in addition to himself and operate the station on an 8-hour basis, 6 days per week, 50 weeks per year. he will pay his employees P 25.00 per hour. He expects to charge P 25.00 for a car wash. Out of pocket miscellaneous cost would be P 8,500 per month. He would pay his employees for 2 weeks for vacations each year. Because of the length of his lease, he must write off his investment within 5 years. His capital now is earning 15% and he is employed at a steady job that pays P 25,000 per month. He desires a rate of return of at least 20% on his investment. Would you recommend the investment? Use ROR method and Annual Worth method.Your firm has discovered a cheap and efficient technology of turning used plastic bottles and bags into various products. You limit your attention to the following two production options: you can produce plastic utensils or helmets. In the "utensils" case your estimat ann revenue $25,000, while production will cost you $8,000. However, in your "helmets" option, you expect to sell 2000 helmets every year at $10 each and the average total cost of every helmet will be $3. What is your accounting ?profit if you decided to produce helmetsFor the following economic calculations, write the factors (multipliers) that should be used, Q2. in (i) using the parameter values, and in (ii) calculate the result by showing your computations. Write the results you find in the spaces left. (Use factors for your calculations.) EXAMPLE: If you deposit S 100 to a bank account that earns 8% annual interest, how much money will you have in this account after five years? (i)(F/P, 8%, 5) (ii)146.93 100 * (F/P, 8%, 5) = 100 * 1.4693 = 146.93 TL a. You plan to take a credit with $1500 installment size per year with an annual interest rate of 8% over six years from a bank. What is the amount of your current credit? (i). (ii) b. A bank is required to deposit money for four years with an interest rate 10%. The money deposited at the end of the first year is 6000 TL and the amount of money deposited in the next three years will be reduced by 500 TL every year. How much money will be in the bank at the end of the fourth year? (i). (ii).