19. A business worth $180,000 is expected to grow at 12% per year compounded annually for the next 4 years. (a) Find the expected future value. (b) If funds from the sale of the busi- ness today would be placed in an account yielding 8% compounded semiannually, what would be the minimum acceptable price for the business at this time? [10.3]

Q: 11. An asset is expected to generate a free cash flow of $10,000 per year for five years. If the…

A: Formula:                P= C×1-1+r-nr where,            P is Present value of Annuity            C…

Q: At what rate must Rm50,000 to grow to 406,855 IN 15 years compounded annually? Select one: a. 18%…

A: Amount Invested = RM 50,000 Amount gro in 15 years = RM 406,855 Years(n) =15 Interest rate = r% let…

Q: 1. A company will have to spend $300000 on new plant in two years from now. Currently investment…

A: Present Value = $300,000 Time Period = 2 Years Interest Rate = 10%

Q: If you invest $5,000 now, and your investment pays 12% per annum, how much will you have in three…

A: Following information is given in the question: Investment today (Present value) = $5000 Annual…

Q: 19. A business worth $440,000 is expected to grow at 10% per year compounded annually for the next 3…

A: The future value of any value represents its worth in monetary terms after n periods of growth at a…

Q: 2. During the current year, Black Rose Inc. had an investment of P 200,000 that is expected to…

A:

Q: Park Co. is considering an investment that requires immediate payment of $27,000 and provides…

A: Investment refers to the sum amount of money or payment made in order to acquire some form of…

Q: Find the time required for an investment of 5000 dollars to grow to 6700 dollars at an interest rate…

A: we have convert annual rate to quarter period interest and period into quarterly period also.

Q: What present value amounts to $15,000 if it is invested for 20 years at 6% compounded annually?…

A:

Q: Your company will generate $74,000 in annual revenue each year for the next seven years from a new…

A: Present Value = future value discounted at 7.25%

Q: Josh purchased a new machine for his business. Josh expects to produce 80 products at P 100,000.00…

A: Cash flow is the flow of cash in entity. There can be inflow or outflow of cash depending upon the…

Q: 22. You plan to purchase a property which has an expected NOI of $200,000. You plan to borrow…

A: DCR stands for debt coverage ratio. This ratio is used to measure the ability of a project to use…

Q: You want to make an investment of $2,000,000 in new equipment which is expected to generate $230,000…

A: Given: Investment = $2,000,000 Revenue = $230,000

Q: How much will $10,000 grow to in 3 years, assuming an interest rate of 9% compounded quarterly? What…

A: As you have asked a multiple subpart question, we will answer the first three subparts for you. To…

Q: An investment product promises to pay $25,458 at the end of nine years. If an investor feels this…

A: Annuity: The fixed amount paid or received in equal time periods is referred to as annuity.Present…

Q: 3. Suppose one plans to invest $750 a month this year, $800 a month next year, $850 a month the year…

A: Future value of growing annuity is the future value of current stream of cash flows that keeps…

Q: How much was initially invested if the value of the investment is at P200,000 after 3 and a half…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: Valve Corporation spent P600,000 per year for the past 3 years in developing their latest product.…

A: Here, we need to equate the present value of the cost and revenues. PV of cost now = PV of base…

Q: If Quail Company invests $50,000 today, it can expect to receive $10,000 at the end of each year for…

A: Net Present Value = Present value of cash inflows + Present value of salvage value - Initial…

Q: Annual revenues in our company are $1.5 million this year. If they are expected to grow at a…

A: Future Value = Present Value *  (1+rate)^years

Q: A company wants to deposit $500,000 per year in an investment which earns interest of10 percent per…

A: The value at the end of the 10 deposit is the future value of the first 10 deposits.

Q: A business worth $990,000 is expected to grow at 8% per year compounded annually for the next 5…

A: Req-a.   Business Worth today $9,90,000 Growth Rate 8% Future value of $1 at 8% for 5 years…

Q: You deposit $10,000 into an investment account.  You believe that you can reasonably expect a…

A: A future value formula can be used to calculate the value of investment (FV) after 30 years. The…

Q: 19 The project analyst of Carbon Company is considering the purchase of a new computer mainframe…

A:

Q: If Quail Company invests $46,000 today, it can expect to receive $12,000 at the end of each year for…

A: Net present value method is used to evaluate the investment projects. We can evaluate the project by…

Q: 10. Determine the present value now of an investment of OMR3,000 made one year from now and an…

A: The money's worth varies with time. Therefore, we consider the value of the money with time. Today's…

Q: An investment of P50,000 is made at the beginning of each month for 5 years. How much will the…

A: The investment value can be calculated as future value of annuity due

Q: An investment of P100,000 is expected to yield a regular annual net income of P25000 for 10 years.…

A: A benefit-cost ratio (BCR) is a ratio used in a cost-benefit analysis to summarize the overall…

Q: A business worth $180,000 is expected to grow at 12% per year compounded annually for the next 4…

A:

Q: is the present value of $10000 to be received 20 years from now, if the principal is invested at 8%…

A: Given, Amount to be received, A = $10,000 No. of years, n = 20 Interest rate , i = 8% or 0.08

Q: 8. If you buy a factory for $250,000 and the terms are 20 percent down, the balance to be paid off…

A: Computation:

Q: What is the future worth six years from now of a present cost of $375,000 to Corning, Inc. at an…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: The present amount needed to generate an annual income of $50,000 for 20 years if the expected rate…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: 8. Determine the future value at the end of two years of an investment of OMR3,000 made now and an…

A: Future value refers to the future worth of a money that has been invested now. Future value of money…

Q: be in seven years? Price-Earnings Ratio Consider Pacific Energy Company and Atlantic Energy, Inc.,…

A: Dividends are the part of net income that is paid by the company to its shareholders as a reward for…

Q: A project’s annual revenues will be $50,000 the first year and will decrease by $1500 per year over…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: Consider the case of Flying Cow Aviation Inc.: Flying Cow Aviation Inc. is expected to generate a…

A: To compute the intrinsic value per share, total value of firm is determined by determining the total…

Q: The Megabucks Corporation is considering buying OHaganBooks.com. It estimates OHaganBooks.com's…

A: The present value is arrived at by discounting the future cash flow using the interest rate. This is…

Q: How much would a company have to invest now in order to sufficiently provide for annual payments of…

A: Solution:- Calculation of the How much would a company have to invest as follows under:-

Q: 26. We plan to have $1,500,000 in 35 years. We will make quarterly deposits of $1,000 at the end of…

A: Future Value Required in 35 years = 1,500,000 Interest rate for last 10 years = 8% compounded…

Q: A small company plans to spend $10,000 in year 2 and $10,000 in year 5. At an interest rate of…

A: Equivalent annual worth analysis is done to determine the net worth after subtracting equivalent…

Q: ali business with 780000 is expected to grow at 10% per year compounded annually for the next 4…

A: Expected future value can be defined as the value of the fund over a future time period with respect…

Q: Beckham Corp. is considering an investment which should be worth $600,000 10 years from now when it…

A: Principal amount invested now will become certain amount after certain period of time at specific…