years using sinking fund method
Q: epair needs to accumulate 26000 in 6 years to purchase new equipment, what? 's sinking fund in…
A: This strategy is frequently used to guarantee that sufficient money are available to repay debt,…
Q: Project A costs $4,800 and will generate annual after-tax net cash inflows of $1,700 for five years.…
A: Net Present value = Present Value of Cash Flow - Initial Investment
Q: he internal rate of return method is used to analyze a $831,500 capital investment Determine a…
A: Internal rate of return is rate on which present value of cash flow is equal to the initial…
Q: our HVAC service provider says your home air/heating unit should be replaced in three years; the…
A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…
Q: Find the missing values assuming continuously compounded interest. (Round your answers to bwo…
A: The future value of continuous compounding is calculated using the following formula. Future value…
Q: 1. A loan is being handed out in multiple increasing semi-annual releases. The first release is…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: To provide for future education cost a family considers varies methods of savings. Assume saving…
A: Solution:-When an equal amount is saved each period at end of period, it is called ordinary…
Q: ve purchased a machine worth P1,564,748.00. And it needs maintenance at the end of every 6 months…
A: Present value of the money can be found by the interest rate and period given by using the formula.
Q: An investment today of $4500 is worth $17,000 in 9 years. What annual interest rate would the…
A: In this question rate of return is to be find out. Rate of return is the rate which is earned on an…
Q: What's the present value of a 4-year ordinary annuity of Php2,250 per year plus an additional…
A: Present Value = Future Value × PV Factor Pv Factor = 1(1+r)n
Q: A truck is payable P49, 282 for 7 years at the rate of 5% compounded continuously Calculate the…
A: Continuously accumulated interest is the numerical furthest reaches of the overall self-multiplying…
Q: A truck is payable P49,282 for 7 years at the rate of 5% compounded continuously Calculate the…
A: Given p=p49282 r=5% =5/100=0.05 t=7 years
Q: Use a calculator to evaluate the amortization formula m = P r n 1 − 1 + r n −nt for the…
A:
Q: Find the present value, using the present value formula and a calculator. (Round your answer to the…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: Blossom, Inc. is considering purchasing equipment costing $90000 with a 6-year useful life. The…
A: PI is also known Profitability Index. It is a capital budgeting techniques which help in decision…
Q: The current amount of money that can be afford to invest is
A: Given in the question: A major overhaul can increase output by 20% Additional Cash Flow…
Q: Monroe Corporation is considering the purchase of new equipment. The equipment will cost $43,000…
A: The present value of the annuity is the discounted figure of all the cash inflow that is generated…
Q: Lab Create the amortization table that includes: Loan Balance, Payment , Interest, Principal, New…
A: Present value of annuity Annuity is a series of equal payment at equal interval over a specified…
Q: If the Interest rate is 10%, what is the present value? (Use excel function) A Initial Cost 5300…
A: Net present value is the technique used in capital budgeting to evaluate the acceptability of the…
Q: What is the future value of an investment of $1,000 paid every year for five (5) years when the…
A: Future value of amount includes the amount being deposited and amount of the compounding interest…
Q: How many years are needed for P40,000 to yield P13,756.66 if invested at 6% converted semi-annually…
A: Present value (PV)= 40,000 Interest amount = 13,756.66 Rate of interest = 6% Semi-annual interest…
Q: an Asset's Value You purchased an asset that is expected to provide $5,000 cash flow per year for 4…
A: Here, Cash Flow is $5,000 Time Period is 4 years Required Rate of Return is 6%
Q: As the winner of a competition you are entitled to $5,000 at the end of next year, with this amount…
A: It is a case of the growing annuity. Here, the annuity is growing each year with a fixed percentage.…
Q: cost of $100,000. Table Top wants to know how = cost in 5 years. Which table should Table Top use…
A: Present value is the amount of money that must be invested in the present to achive a future…
Q: A building is to be paid indefinitely at the rate of 6%. The building's price is P1M if paid in…
A: SOLUTION- Compounding is done by the lenders when they provide interest on amount which includes…
Q: Kindly answer the problem with complete solution so that I can understand. Write in handwritten…
A: The initial payment made to acquire anything on credit is its down payment. The annual payments that…
Q: An annuity of 41,431 is to be paid in 5 years at the rate of 4% compounded continuously. What is the…
A: There are investments made by the company for the purpose of gaining financial returns. These would…
Q: Find the capitalized cost of a present cost of P800,000, annual costs of P55,000, and periodic costs…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: 6. Find the cash value of a condominium unit if a Php750,000 down payment and a monthly amortization…
A: The cash value of an asset refers to its present value which is the discounted value of all future…
Q: A new oven wil save s00 per year in electricity expense. How much can we aford to pay for ths oven…
A: Here, Annual savings = $90 Time period = 13 years Interest rate = 16% To Find: Affordable amount of…
Q: Showing how to use a scientific calculator find the monthly payment that will yield the given…
A: The future value is calculated by putting present value for a certain period of time time on an…
Q: Acompany is considering an investment of $538,000 in a land development project. The investment will…
A: NPV or net present value is an important capital budgeting tool. It is the sum of present values of…
Q: Use a calculator to evaluate the amortization formula m = P r n 1 − 1 + r n −nt for the…
A: Loan Amount (P) = $14,000 Interest Rate (r) = 5% Time Period(t) = 7 Years Frequency (n) =12
Q: Internal Rate of Return A project is estimated to cost $507,840 and provide annual net cash flows of…
A: At IRR Net present value is zero. It means At IRR present value of cash inflows is equal to…
Q: Project A costs $5,200 and will generate annual after-tax net cash inflows of $1,700 for five years.…
A: Net Present Value Net present value is a method of capital budgeting that are used to measure the…
Q: Find the amount of a perodic payment necessary fur the deposit of a sinking fund. Amount needed…
A: A sinking fund is created for repayment of debt.A fixed sum of money is set aside periodically…
Q: You are offered to spend P500,000 on a certain project that promises to yield yearly benefit of…
A: Under cost benefit analysis, present value of the benefits from the project are compared with the…
Q: Compute for the present value of a perpetual investment that would pay Php. 25,000 every year if the…
A: Annual payment (C) = Php 25000 Interest rate (r) = 15%
Q: Find the future value, using the future value formula and a calculator. (Round your answer to the…
A: Present Value = $119,500 No.of years (n) = 20 Interest rate(r) = 6.5%
Q: (c) A sum of 10,000 RO is required in 5 yoars from now. An annual sinking fund is to be sot up that…
A: A sinking fund is created by setting the required amount periodically. The sinking fund is set up to…
Q: Find the present value, using the present value formula and a calculator. (Round your answer to the…
A: Present value = Future value/ (1+ (periodic interest rate× time))
Q: Use a calculator to evaluate the amortization formula for the values of the variables P, r, and t…
A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…
A machine has a first cost of P45000 with an interest rate of 10% annually.
Expected salvage value after 8 years is P8000. Find the book value after 5
years using sinking fund method.
Step by step
Solved in 3 steps
- Calculate Net Present Value of minitor that costs $ 35,000.00 Amortization period 5 years with savings of 8000 per year with a hurdle rate of 12%, 5%. Which investment is more attractive?The interest rate is 8%. If all the alternatives have a 12-year useful life and no salvage value, which alternative should be selected?A machine has the following cash flows for the last two years of service. The MARR is 10% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Calculate the EUAC of the machine if kept in service over the remaining two years O A. $49,600 O B. $24,929 O C. $37,500 O D. $27,500 O E. $22,100 (b) Calculate the marginal cost of the machine for year 2. OA. $37,500 O B. $22,100 OC. $24,929 O D. $27,500 O E. $49,600 Year 0 1 2 Market Value $45,000 31,000 24,000 (・・・ O&M Costs $9,000 12,000
- Project A costs $5,300 and will generate annual after-tax net cash inflows of $1,900 for five years. What is the NPV using 5% as the discount rate? Round your present value factor to three decimal places and final answer to the nearest dollar. (Click here to see present value and future value tables) 2,928 xIf you will have an amortization to buy house and lot, which plan will be the best? Explain comprehensivelyOriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment Annual net cash flows Life of the equipment $600,000 $ 64,000 15 years Salvage value Discount rate 6% The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment would be: (Round your answer to 1 decimal place.)
- Answer the following. Provide a solution. Thank you!You invest £1,000 in a project and receive £252 at the end of each of the next 6 years. Calculate the net present value (NPV) of the project at 5% annual effective rate of interest. Give your answer to 2 decimal places.At 6% interest rate, find the capitalized cost of a bridge whose cost is P 300 million and life is 20 years. If the bridge must be partially rebuilt at a cost of P 100 million at the end of each 20 years. P 445,178,192 O P 145,413,221 P 345,307,595 P 245,398,210
- Calculate the future value of an investment of $1, 000 at an interest rate of 5% after 5 years. ( USE EXCEL PLEASE)You have estimated that your vehicle will need to be replaced 10 years from now at a cost of K120, 000. If the interest rate is fixed at 10%, how much do you need to set aside every three months to provide for that money 10 years from now?The maintenance on a machine is expected to be $1,500 at the end of four years. This amount is expected to increase by $100 each year for the next five years. What sum of money must be set aside now to pay the maintenance for this whole period? Use 5% interest. Draw a cash flow diagram and do a manual solution.
