Twoyears ago, a certain company invested 8450,000 in a project with a simple interest of B% per year. Now, the companyplans to invest the total amount accumulated so far in another project with a compound loss of 10% per year for another threeyears. Calculate Equal Payments Equvalert to Returna?

The following information has been provided in the question: Amount invested =$450,000 Simple…

Twoyears ago, a certain company invested S450,00 in a project with a simple interest of 8% per year. Now; the company plans to invest the total amount accumukated so far in another project with a compound loss of 10% per year for another three years Calculate Equal Payments Equivalent to Returm?

Twoyears ago, a certain company invested S450,00 in a project with a simple interest of 8% per year. Now; the company plans to invest the total amount accumukated so far in another project with a compound loss of 10% per year for another three years Calculate Equal Payments Equivalent to Returm?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Twoyears ago, a certain company invested 8450,000 in a project with a simple interest of B% per year. Now, the company
plans to invest the total amount accumulated so far in another project with a compound loss of 10% per year for another three
years. Calculate Equal Payments Equvalert to Returna?

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Terminal Ltd purchased a machine at R80 000 two years ago. This machine can be replaced with a new machine at a cost of R100 000. The new machine can be sold for R30 000 after completion of a 5-year project. The old machine can be sold for R15 000 today. The SARS capital allowance on both machines is calculated at 20% per year. Net working capital will decrease with R1 500 at the end of the project life. Assume a tax rate of 28%. What is the net cash flow of the project in year 5? R20 100 R21 600 R30 000 R28 500 R8 400
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