The market for widgets is increasing by 15% per year from current profits of $2,000,000. Investing in a design change will allow the profit per widget to stay steady; otherwise the price will drop by 3% per year. If inflation in the economy is 4%, what is the present worth in Year-1 dollars of the savings over the next 5 years? 10 years? The interest rate is 10%.

Q: Your project will give you a rate of return of 100% over 15 years. Is this a lot or a little? How…

A: Effective Rate is real rate at which investment value will appreciate over a given period. It shows…

Q: The value of business, currently priced at 100000 Rial, is expected to increase by 20% a year.…

A: Given information: Current Price : 100,000 Rial Increase every year : 20%

Q: You have a cash of Rs. 100,000 today. What will be its value after 5 years if you make an investment…

A: Present Value = 100,000 Time Period (N) = 5 Interest Rate = 12%

Q: You want to save $800 a month for the next 30 years and hope to earn an average rate of return of 12…

A: The equal series of payment will be annuity. To compute the money after certain point of time in…

Q: You want to be able to consume 12.4% more of goods and services this coming year. You know that…

A: Rate of return = 12.4% or 0.124)Inflation rate = 8% or 0.08

Q: You are expecting to receive $1000 five years from now. How much this future cash flaw is worth…

A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…

Q: Your firm has taken on cost saving measures that will provide a benefit of $11,000 in the first…

A: First year benefits (C) = $11,000 Annual growth rate (g) = - 0.03 (-3%) Interest rate (r) = 0.09…

Q: Suppose you found an investment that earns 6.0% each year. Suppose you want to withdraw 11,000…

A: Present value is the value of future cashflow at todays date discounted at specified rate. formula:…

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: A stream of annual cash flows will begin 10 years from now and end 20 years from now. The initial…

A: Present value is a financial concept that represents the value of a future sum of money in terms of…

Q: Company PQR is starting a sinking fund for two future purchases. The risk free rate is 3.2%. They…

A: A sinking fund is a fund that is established to meet future debt obligations. Any individual or…

Q: Assume you have $100,000 now. If you get an average annual return of 4%, how many years will it take…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per period i.e. 4%n = no. of…

Q: a) You invest 155 000 TL for a year. At the end the year, you have 174 375 TL net in your account.…

A: We will apply the formula to calculate the real interest rate using the nominal interest rate and…

Q: You have an investment that is expected to make annual payments that grow at a constant annual rate…

A: In an annuity the payments grow by a constant amount and that factor remains fixed and the same for…

Q: 4) wishes to index this amount by about 0.075% per quarter to compensate for inflation effects. How…

A: When the nominal rate is adjusted for inflation, it is known as real rate of return. Real Rate of…

Q: Suppose you have an account that will grow to $381,000.00 in 15 years. It grows at 3% annual…

A: The annuity refers to a payment series that provides the holder with a periodic payment in exchange…

Q: How much will investment accummalate to when you save 1500 every quarter for 5 years. The market…

A: A present asset's future value, abbreviated as FV, is the value that an asset is expected to have at…

Q: Tricorp Company is considering an investment that is expected to return $320,000 after four years.…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: Now, drawing on your understanding of the concept of present value, calculate how much you would…

A: Present value is the discounted value of future cashflow

Q: An investment has a cost of $3500. The investment will have a payout at the end of the first year.…

A: Approach: Let's assume the desired minimum payout is P.We will roll out the yearly payout…

Q: You are offered and investment opportunity that will produce continuous income at a constant rate of…

A: Pressent value:Present value refers to the concept in finance that calculates the current worth of a…

Q: investment target. What is the nominal cash-flow you would have to deposit in year 10 if inflation…

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: Suppose you have $100,000 cash today and you can invest it to become a millionaire in 15 years. What…

A: The future value refers to the estimated value of an asset or investment at a specific point in the…

Q: an investor has decided to save 5000 every year growing at a rate of 4.9% per year. the investor…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Suppose you found an investment that earns 6.0% each year. Suppose you want to withdraw 24,000…

A: Given information: Investment earns 6% Future value is $24,000 Number of years is 4

Q: An asset costs $7 million today. It can generate a $2 million income every 6 years, starting from…

A: An investment's profitability or success over a given time period is assessed using the annual rate…

Q: invest it at a nominal interest rate of 8%. Given the expected inflation is 5% per year, what is the…

A: Given, Nominal interest rate = 8% Expected inflation = 5%

Q: What is the present value of aperpetuity of $50 per year if theannual interest rate is 10% andthe…

A: The objective of this question is to calculate the present value of a growing perpetuity. A…

Q: e expected average rate of return in the next decade is 4%. What is the value of $60,000 ten years…

A: The value of assets increase with time and grows to larger amount over the period of time due to the…

Q: An investment of $1,000 was made 35 years ago. What is the amount now at the market interest rate of…

A: FV  =  PV (1 + r)n where, FV  =  Future ValuePV  =  Present Valuer     =  Interest Raten    =  No.…

Q: An investment requires 15,000 today and produces a yearly cash flow of 700 in perpetuity. Cash flow…

A: Here, Investment today is 15,000 Yearly Cash Flow is 700 in perpetuity Growth Rate is 3%

Q: You ́re considering an investment that you expect will produce an 9% return next year, and you…

A:

Q: Assume that you want to have 2000 in there years time and nominal interest rate is 21% and the…

A: Future value = fv = k2000 Time = t = 3 years Nominal interest rate = 21%  Inflation rate = 10%

Q: How much must I start investing now, per month, to have $1M in 25 years? The bank pays an APR of…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: How long will it take to triple our investment if we can earn an 8.5% annual return?

A: Annual Rate: It is the rate for the complete year charged on a loan amount or utilized for computing…

Q: What is the future value of a constant income stream of $20,000 per year in 6 years from now given a…

A: Given information: Constant income stream of $20,000 Number of years is 6 Interest rate is 3.5%

Q: Suppose you have an account that will grow to $253,000.00 in 25 years. It grows at 7.5% annual…

A: Future value is the value of future cash flow at a certain period after applying a discount rate,…

Q: You are required to find how long it will take a sum of money (or anything else) to grow to some…

A: Real return rate4%Inflation rate6%FV=3*PV

Q: Company ABC invests in a long-term project that will start generating cash flows 10 years from now…

A: Annual cash flow (C) = $22,000,000Growth rate (g) = 0.02Interest rate (r) = 0.05Initial cost (I) =…

Q: General price inflation is estimated to be 3% for the next 5 years, 5 % the 5 years after that, and…

A: Future Worth(FW) is value of current amount in future time calculated by compounding current amount.

Q: An investor is looking to invest OR.70,000 for one year. He requires a real return of 12%. The…

A: Nominal rate of return = (1+real return ) * (1+ inflation rate ) - 1

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.