1. Cardinal Financing lent an engineering company Php 500,000 to retrofit an environmentally unfriendly building. The loan is for 5 years at 10 % per year simple interest. How much money will the firm repay at the end of 5 years?

Q: Environmental recovery company RexChem Partners plans to finance a site reclamation project that…

A: Given information: Borrowed amount is of $3,800,000 Final lump sum amount received after 4 years is…

Q: Rubbermaid Plastic Corp. invested ₱10,000,000 in manufacturing equipment for producing small…

A: Invested money is ₱10,000,000. Annual interest rate is 5%. Maturity is 7 years. Compounding…

Q: Galvanized Products is considering purchasing a new computer system for their enterprise data…

A:

Q: A factory company has 5 years to prepare for relocating in another place. The equipment for loading…

A: Capital rate per year can be defined as the amount to be capitalized on annual basis. It is…

Q: 4. A company wishes to make an investment of RO. 400,000 in a cement manufacturing machine. The…

A: ARR = Average annual profit / Initial investment.

Q: If HP borrows $1,000,000 from a different source at 5% per year compound interest, compute the total…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: A public school is being renovated for BD13.5M. The annual value of benefits to be generated from…

A: Payback period is the period within which the initial investment is recovered fully.   Payback…

Q: A new machine is expected to cost Php 300, 000 and have a life of 5 years. Maintenance costs will be…

A: Calculate he present value of expected costs

Q: Accounting company is planning to acquire a machine costing K500,000. Effective life of the machine…

A:

Q: Rubbermaid Plastic Corp. invested P 10,000,000 in manufacturing equipment for producing small…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Galvanized Products is considering purchasing a new computer system for their enterprise data…

A: The purchase price Galvanized products is $100,000 and borrowed 1/4 of purchase price i.e., $25,000.…

Q: os is needed at the end of each year to maintain each building in Rizal Technological University in…

A: Given problem relates to the concept of perpetuity. A perpetuity is a series of uniform cash flows…

Q: Galvanized Products is considering the purchase of a new computer system for their enterprise data…

A: Before the investing money in new assets, profitability and return from that asset is computed. This…

Q: A small construction company is considering the purchase of a used bulldozer for 100,000 SR. They…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

Q: 2. What is the capitalized cost of a Sugar MilI Plant w/c requires Php 5,000,000 for construction…

A: Expense The cost that an organization incurs for revenue generation is known as an expense. Accrual…

Q: transport company sets aside funds to maintain its trucks. It anticipates spending $3,000 on repairs…

A: In this we have to calculate present value of expenses and than find out equivalent annual expenses.

Q: a) What is the Balance due on the original mortgage (principal) if all payments have been made…

A: i = 20/4 = 5%  n= 10*4 = 40 Now, Quarterly payment = 100000 * [i*(1+i)n/((1+i)n-1)] = 10000000*…

Q: A telemarketing company bought a new office space for Php720,000 downpayment and monthly installment…

A: Down payment (DP) = Php720,000 Monthly payment (P) = Php40,000 Period (n) = 42 Months Interest rate…

Q: A toy manufacturer is considering the installation of a new process machine for the toy…

A: Internal rate of return is the rate at which net present value of the cash inflows and cash outflows…

Q: A small analytical laboratory borrowed $26,000 (the original amount or the principal) at an interest…

A: Compound interest is referred as the interest which is calculated on principal amount which involves…

Q: REQUIRED: Compute the lease rentals payable which will make the firm indifferent to the loan.

A: Cost of Machine 500000 Life 5 years     Borrowing 500000 Rate of Interest 10% Principal…

Q: A special purpose machine tool set would cost $20,000. The tool set will befinanced by a $10,000…

A: The concept used to determine the effective investment to compare the present value of cash outflows…

Q: A business set up a sinking fund so they will have a 62,000.00 to pay for a replacement piece of…

A: Please refer to the image below.

Q: 1. Samos Excavating is considering purchasing some new equipment for the company. Due to the expense…

A: Capital Budgeting: Capital budgeting decisions are the most important decision in corporate…

Q: 2. You purchased a building five years ago for $200,000. Its annual maintenance expense has been…

A: Net Present Value: It is the tool used for analyzing Profitability of a projected investment   For…

Q: 1. HP borrowed money to do rapid prototyping for a new ruggedized computer that targets desert…

A: Loan amount (P) = P 1,000,000 Interest rate (r) = 5% Period (t) = 3 Years

Q: The purchase price of a property, land and improvement, was Php 16,250,000. You put 20% down payment…

A: Computing the Net Operating Income: The net operating income is calculated as the difference between…

Q: AFX Sdn Bhd is trying to decide whether to accept a business loan or a lease financing facility for…

A: Lease agreement: It is an agreement wherein one party promises the lessee to rent the property or…

Q: A company makes fixed annual payments to a sinking fund to replace equipment in five years’ time.…

A: Sinking fund is a fund which is established for the purpose of collecting an amount. This amount can…

Q: 1. The expansion plan of the business firm requires the purchase of a parcel of land on which to…

A: The formula to determine the future value compounded semi annually is, Future value = Present value…

Q: Overnight Trucking recently purchased a new truck costing $150,800. The firm financed this purchase…

A: In the following question we are required to calculate the number of years it will take for the…

Q: Galvanized Products is considering purchasing a new computer system for their enterprise data…

A: 1. Computation of loan amount. Amount of loan = 100000 × 25% = 25000 Loan including interest = 25000…

Q: For Nos. 33-35. A CAD center just purchased a CAD software for P500,000 now and annual payments of…

A: 33. Let the annual payment be denoted as CFn for year n. r = 20% n = 5 years Present worth of…

Q: a) To upgrade its vehicles, the project Insignia is considering undertaking, the company is…

A: The loan is repaid by making monthly payment which means the interest on loan is compounding on…

Q: You purchased a building five years ago for $200,000. Its annual maintenance expense has been…

A: Initial Cost = $200,000 Maintenance = $15,000 Annual Revenue = $60,000 MARR = 8%

Q: Your company has been presented with an opportunity to invest in a roject. The facts on the project…

A: Time Period = 10 Years Interest Rate = 15% Initial Investment  PHP     5,00,00,000.00 Gross…

Q: HydroKlean LLC, an environmental soil cleaning company, borrowed $3.5 million to finance startup…

A: Net present value is the technique used in capital budgeting to evaluate the acceptability of the…

Q: Company XYZ decides to invest in a $25,000,000 project. The company will finance the project with…

A: NPV  It is utilized for analyzing the project’s profitability in capital budgeting as well as in…

Q: Galvanized Products is considering the purchase of a new computer system for its enterprise data…

A: Present value computes the existing value of future benefits by discounting future worth with a…

Q: Leclerc has borrowed $2.4 million to finance the building of a factory. Construction is expected to…

A: We have the following information: Borrowed $2.4 million to finance the building of a factory…

Q: A broadband service company borrowed $2 million for new equipment and repaid the principal of the…

A: “Since you have posted multiple questions, we will solve first question for you. If you want any…

Q: A widget manufacturing plant manager decides to purchase a new drill press with borrowed funds in…

A: Solution : Given Purchase cost of drill press 2,000,000 Operating expense for first year…