Q: 1. What is the payback period
A: Payback Period is the Period the company is able to recover the investment it has made for a project…
Q: 1 1(a) 1(b) Jonkin plc are considering a project that is susceptible to risk. An initial investment…
A: NET PRESENT VALUE (NPV) Net Present Value is one of the Important Capital Budgeting Technique. Net…
Q: What is net present value?
A:
Q: On August 31, 2020, SG Corporation (SME) purchased all the net assets of Popsters Corporation by…
A: The capitalized cost of the investment is P2,949,000.
Q: Present value is a. the value now of a future amount. b. the amount that must be invested now to…
A: Present Value: It states that the value of money today is worth more than the same amount of money…
Q: What is the math behind the net present value calculation?
A: Net present value is based on capital budgeting technique. Net present value is used to measure the…
Q: What is future value, FV?
A: Future Value: The future value is the value of the present amount compounded at an interest rate…
Q: (a) What is a Capital Recovery Amount Factor?
A: Step 1 The ratio of a constant annuity to the present value of receiving that annuity for a certain…
Q: Which of the following is not a variable in the basic present value equation? Multiple Choice…
A: Investors are holding securities for the purpose of gaining the returns. The return is calculated…
Q: Calculate the expected value of the scenario. X₁ P(x₁) -$0.25 0.1 SO 0.5 $0.25 0.1 $0.50 0.3
A: Xi P(Xi) $ -0.25 0.1 $ - 0.5 $ 0.25 0.1 $…
Q: If Quail Company invests $50,000 today, it can expect to receive $10,000 at the end extra $6,000 at…
A: calculation of net present value are as follows
Q: From the given table find the net present value. Thank you!
A: The present worth (NPV) is the distinction between the current worth of money inflows and the…
Q: e opportunity cost of a good
A: First option is wrong because money price is the price of goods in terms of money value. Second…
Q: What happens to a future value is you increased the rate, r? What happens to a present value?
A: When the interest rate increases, the future value of a sum now will increase. This is because the…
Q: 8. How should internal rate of return be calculated in terms of Net Present Value?
A: For a given project, there is a cost incurred at the beginning. It is called the Initial cost of the…
Q: Present the internal rate of return criterion and its strengths and weaknesses.
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: Vaterways puts much emphasis on cash flow when it plans for capital investments. The company chose…
A: Introduction Net Present Value NPV: One of the most preferred techniques of Capital Budgeting, which…
Q: You place $40,000 in an investment account today that earns 5% compounded semiannually. How much…
A: Amount invested today$40,000.00Additional amount invested at the end of each semi-annual…
Q: Define the term Rate of Return?
A: Rate of Return:It means the benefit that is derived from the investment, benefit may be in terms of…
Q: Define Present value and future value. If present value and future value are equal what is the rate?…
A: The time value of money is an important concept in finance which states that the money a person…
Q: Part 2: Music, Inc. Music, Inc. had the following beginning and ending values in its three inventory…
A: Gross margin equals net sales minus cost of goods sold (COGS). In other words, it is the amount of…
Q: What is the rate of return when 35 shares of Stock A, purchased for $20/share, are sold for $815?…
A: Rate of Return = Total Profit / Purchase cost of shares
Q: which one is correct please confirm? QUESTION 19 The present value of a single payment can…
A: Present value is the current worth of the future payment at a given rate of return for a particular…
Q: Suppose a 15- year corporate bond has a 10% coupon rate and a $1,000 par value. Coupons are paid…
A: A Bond refers to an instrument that represents the loan being made by the investor to the company…
Q: Principal Partners is considering the purchase of a new piece of equipment. The equipment costs…
A: Initial cost = $38,864 Year 1 = $12,019 Year 2 = $19.402 Year 3 = $13,304 Year 4 = $8048 Year 5 =…
Q: How much interest, in total, will be earned? Need last
A: Future value of annuity formula.FV = A * whereFV = Future value of annuityA = periodic depositsr =…
Q: 4. What is present worth? Group of answer choices Difference of future worth and interest Amount of…
A: Let's assume P = Present worth and F = Future worth n = Duration r = Interest rate
Q: Dungan Corporation is evaluating a proposal to purchase a new drill press to replace a less…
A: The net present value is a capital budgeting technique that is used to evaluate proposed…
Step by step
Solved in 2 steps with 2 images
- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityFind the present value of an ordinary annuity with deposits of $22,682 quarterly for 5 years at 5.6% compounded quarterly. What is the present value? (Round to the nearest cent.)Find the present value of an ordinary annuity with payments of $18,579 quarterly for 7 years at 8.4% compounded quarterly. What is the present value? $ (Round to the nearest cent.)
- Find the present value of an ordinary annuity with deposits of 23,958 every 6 months for 4 years at 8.8% compounded semi annually. What is the present valueFind the present value of a 5-year annuity due if the annual payments are $600 and the interest rate is 11%. What is the difference between the present value of the annuity and the present value of the ordinary 5-year annuity?Find the present value of an ordinary annuity with deposits of $11,055 semiannually for 10 years at 9.2% compounded semiannually. What is the present value? $ (Round to the nearest cent.)
- Find the future value of the following ordinary annuity. Payments are made and interest is compounded as given. R = $500, 7% interest compounded quarterly for 8 years What is the future value of the ordinary annuity? $ (Round to the nearest dollar as needed.)Find the present value of an ordinary annuity with deposits of $14,531 every 6 months for 3 years at 6.8% compounded semiannually. What is the present value? (Round to the nearest cent as needed.)Find the present value of an ordinary annuity which has payments of $1400 per year for 11 years at 6% compounded annually. The present value is $ (Round to the nearest cent.)
- What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000 with the final payment? Use a nominal rate of 7.23%.Find the future value of the following ordinary annuity. Payments are made and interest is compounded as given. R = $1,000, 5% interest compounded monthly for 6 years What is the future value of the ordinary annuity? (Round to the nearest dollar as needed.)Find the future value of the following ordinary annuities. Payments are made and interest is compounded as given. R = $9000, 5% interest compounded annually for 15 years What is the future value of the ordinary annuity? $ (Round to the nearest cent.)