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?

Q: 2. ABC Corporation plans to set aside $50,000 per year beginning 1 year from now for replacing…

A: Annual amount (P) = $50,000 Interest rate (r) = 10% Inflation rate (i) = 4% Period (t) = 6 Years

Q: We are examining a new project. We expect to sell 6, 100 units per year at $75 net cash flow apiece…

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

Q: A company will need $65,000 in 6 years for a new addition. To meet this goal, the company deposits…

A: Solution: When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: Ace Development Company is trying to structure a loan with the First National Bank.  Ace would like…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: A Freeze dryer is expected to cost RM19,000 two years from now and another RM12,000 four years from…

A: Concept. FV = PV ( 1+ r)n Where , FV = future value  PV = present value  r = interest rate n = time…

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: Your company will generate $74,000 in annual revenue each year for the next seven years from a new…

A: Present Value = future value discounted at 7.25%

Q: Kunkle Company wishes to earn 10% annually on its investments. If Kunkle makes an investment that…

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

Q: The omega venture group needs to borrow to finance a project. Repayment of the loan involves…

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

Q: XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase…

A: The amortization schedule gives information to the lender and borrower about the loan payments due…

Q: he Aggarwal Corporation needs to save $10 million to retire a(n) $10 million mortgage that matures…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: engineering company expects to expand its plant facilities in 6 years at an estimated cost of…

A: a) Solved using Financial Calculator  N = 6 years * 4 = 24 I/Y = 10%/4 = 2.5% FV = 68,000 CPT PMT =…

Q: A company plans to buy new equipment in 6 years. They will start by saving $3,091 at the end of this…

A: The given answer is correct

Q: Coronado Excavating Inc. is purchasing a bulldozer. The equipment has a price of $107,400. The…

A: Interest Rate -  The fees assessed to the borrower in exchange for the assets taken from the lenders…

Q: Kermit is considering purchasing a new computer system. The purchase price is $132,738. Kermit will…

A: The present worth of an investment or money is computed using the present value concept of the time…

Q: A company is planning to borrow $200,000 from a bank to finance the purchase of a new pressure…

A: As per the concept of time value of money the worth of money changes with passage of time as money…

Q: (Annuity payments) The Aggarwal Corporation needs to save $15 million to retire a(n) $15 million…

A:

Q: A company needs to buy a building in 4 years, and must fund the down payment from its profits. The…

A: For availing a loan for an asset, a person is required to pay some amount as down payment. Down…

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%

Q: (Annuity payments) The Aggarwal Corporation needs to save $10 million to retire a(n) $10 million…

A: The time value of money is a concept in finance that takes into account the effect of compounding to…

Q: Windsor Tool Inc. has a $500,000 loan for a new EDM machine to be used in the tool/die production.…

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

Q: A company plans to buy new equipment in 25 years. They will start by saving $1,370 at the end of…

A: Saving at the end of year = $ 1370 Annual growth rate = 3.5% Annual interest rate = 15.3% Period =…

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

A: An annuity is a financial product that provides a regular income stream to an individual for a…

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

Q: quarterly

A: Introduction: The amount that would be in the account at the end of a particular time period is…

Q: You want to purchase an office building in Brooklyn that is expected to generate $475554 net…

A: The interest and taxes are paid. First the  interest is paid , then the taxex.   Given NOI=475554,…

Q: Equipment that costs $15,000 and generates a $5,000 annual return would appear to "pay back" on the…

A: Given: Investment =$15000Annual return =$5000Inflation rate =30%

Q: Microsoft Co. places 150,000 in an investment that has a return of 8%.     The investment is placed…

A: given, PV = 150,000 r=8% n = 12 years withdrawal year = 6

Q: Lang Industrial Systems Inc. is thinking of expanding its operations and is considering financing…

A: Loans are repaid on a periodic basis with a fixed amount being repaid in each period. The periodic…

Q: A company is considering an investment expected to yield $70,000 after six years. If this company…

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

Q: Rene's Fuel and Oil company is planning to expand in 9 year time. To prepare for this expansion,…

A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…

Q: An investment of $80,000 is expected to generate a net annual income of $25,000 for 5 years. If the…

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

Q: If 14700 dollars is invested at an interest rate of 9 percent per year, compounded semiannually,…

A: Using excel FV function

Q: Your firm rents office space for P250,000 per year, due at the BEGINNING of each year. If your…

A: The present value of the annuity due is the current worth of a cash flow series starting at the…

Q: A manufacturer needs to borrow money to purchase a building. The purchase price of the building is…

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

Q: If 14700 dollars is invested at an interest rate of 9 percent per year, compounded semiannually,…

A: The amount at the end of a specific number of years will be the future value of the initial deposit.

Q: The Omega Venture Group needs to borrow to finance a project Repayment of the loan involves payments…

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.