Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...
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1. At the beginning of the year, P5, 000 was invested in a deposit account earning 8% annually. How much will the deposit be after a year?
2. Supposed your father deposited in your bank account P10,000 at an annual interest rate of 10% compounded yearly. When you graduated from Grade 6 and did not get the amount until you finished Grade 12. How much will you have in your bank account after 7 years?
3. At the beginning of the year, P2,000 was invested in a deposit account earning 8% compounded annually for 5 years. How much will the investment be after 5 years?
4. ABCD Company is an investor in oil companies and they should deposit now in order to receive P50,000 at the start of each year for 3 years at a 12% annual compounding interest rate. How much will the investment be after 3 years?
NOTE: please use the formula below. Thank you!!
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