The optical products division of Panasonic is planning a $3.5 million building expansion for manufacturing its powerful Lumix DMC digital zoom camera. If the company uses an interest rate of 16% per year, compounded quarterly for all new investments, what is the uniform amount per quarter the company must make in order to recover its investment in 3 years?

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A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

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A: First of all we need to compare the future value with the initial investmet .If the future value is…

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A: A loan is an agreement where one party forwards an amount to the other party in return for payments…

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A:

Q: How much will Kingston Technologies have to pay each year in 11 equal payments, starting 2 years…

A: Number of Payment = n = 11Time = t = 2 Present Value = pv = $900,000Interest Rate = r = 15%

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A: Periodic Payment (PMT) = P * r * [(1+r)n /{(1 +r)n -1}] Where, P = Principal borrowed = $500,000 r =…

Q: How much will Kingston Technologies have to pay each year in 11 equal payments, starting 2 years…

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Q: An investment company wants to establish a sinking fund to pay off debts of $85 million which come…

A: Formulas: Future value = amount*((1+rate)^years - 1) / Rate

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A: Present value: It can be defined as today’s value of the sum of money that will be received by the…

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A: Net present value is net cash inflows used to determine investment decisions. Under this method,…

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A: GIVEN, PRICE = $1.5 MILLION = 1500,000 DOWNPAYMENT = $300,000 LOAN AMOUNT = 1200,000 ( 1500,000 -…

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A: We have to find the quantum of loan that will translate into a given monthly payment, after a…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.