A broadband service company borrowed $2 million for new equipment and repaid the principal of the loan plus $275,000 interest after 1 year. What was the interest rate on the loan?

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

A: Net Present Value(NPV) is excess of  present value of cash inflows over initial outlay of proposed…

Q: A new office building was constructed 5 years ago by a consulting engineering firm. At the time the…

A: Given, Loan taken 10,000,000 with 20% interest. After 5 years, refinanced with 20 year loan at 24%…

Q: An engineer invest 3 million in concrete making. In return, ge receives ₱235,000.00 per year for 5…

A: We need to use excel IRR function to calculate rate of return on investment. Formula is…

Q: The firm is formed to purchase and operate a vehicle. The purpose of the vehicle is to operate a…

A:

Q: With a $100,000 investment in a new injection moulding machine, A-Design Inc., a company specialized…

A: The payback period is the span of time necessary to repay the cost of an investment. Simply…

Q: Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows.…

A: NPV(Net Present Value) is excess of PV of cash inflows over Intila Outlay of any proposed project.…

Q: Six years ago, Neighborhood Hardware paid a contractor $63,000 to expand the store. At that time,…

A: Net present value is the difference between the present value of cash inflows and present value of…

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: The firm is formed to purchase and operate a vehicle.  The purpose of the vehicle is to operate a…

A: Annual Revenues are $145,000 Operating Expense are $100,000 To Find: NPV of this investment

Q: The firm is formed to purchase and operate a vehicle.  The purpose of the vehicle is to operate a…

A: If the Asset having life of only one year then whole cost is eligible for depreciation. If the new…

Q: Precision Engineering invested $95,000 at 5.5 percent interest, compounded annually for 2 years. How…

A: According to the time value of money concept, the money available today has some different…

Q: Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows.…

A: 1. Compute NPV of Campbell Manufacturing, assuming a discount rate of 12% as shown below:     The…

Q: Conceptual Connection: Assuming a required rate of return of 8%, calculate the NPV for Evee…

A: Requirement 2:   Compute the present value annuity factor.

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

A: In this question firm wants to buy a new computer  system.It will require an initial investment of…

Q: Fortune Teller Inc., purchased a tarot card-making machine for $1 million. The CCA rate on this…

A: CCA rate is the rate which is acceptable to reduce the value of an asset beyond that rate it is not…

Q: 0,000 and the firm spent $20,000 for shipping, at the end of its life the machine could be sell for…

A: Depreciation reduce the quantity of tax a corporation or organisation pays by tracking the reduction…

Q: The investors of Smith Autos have put up $500,000 to construct a building and purchase all equipment…

A: Viability Analysis helps in comparing the costs and benefits of any business. It helps makes…

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A: Here, Vehicle acquisition cost  is $ 30,000 Years of useful life (economic life) is1 Tax rate is 20%…

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 company plans to purchase an asset in four years at a price of $180,000. How much has to be…

A: The formula for compound interest: Final Amount=Principal×1+ratetime

Q: A firm considering the installation of an automatic data processing unit to handle some of its…

A: given, purchase price = P20,000 lease: year 1 = P8000 decrease every year = P1000 n= 4 r=15%

Q: Your company is planning to purchase a new log splitter for its lawn and garden business. The new…

A: = Initial InvestmentAnnual cash flows=$312,000$40,000 = 7.8 Years

Q: A manufacturer needs to borrow money to purchase a building. The purchase price of the building is…

A: given, purchase price = $1.5 million = 1500,000 downpayment = $300,000 rate =4.85% n =20 years

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A: Given information, Investment amount(P)=$350,000 Time(t)=5.5 years Compounded monthly (m)=12…

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A: Company buy the equipment on loans by banks that are to be paid by equal annual payments to the…

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A: Internal rate of return Internal Rate of Return is the minimum rate of return at which NPV of the…

Q: Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows.…

A: The question is based on the concept of Net Present Value.

Q: A businessman invested Php 50,000 in a company that engage in manufacture of plastic products. In…

A: Rate of return refers to the net profit or loss on investment over the specified period which is…

Q: educe its salary cash expense by $2,000,000 per year. The system has a five-year life, it will be…

A: Net Present Value: It is a measure of profitability in absolute dollar terms and is estimated by…

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

A: Purchase price= $100000 Salvage value= $5000 Maintenance expenses= $25000/ year Savings due to…

Q: Emerson Processing borrowed $900,000 for in- stalling energy-efficient lighting and safety equipment…

A: Simple interest is based on the principal amount of a loan or the initial deposit in a savings…

Q: A construction company borrowed money at 10% per year interest to purchase new heavy equipment nee

A: All sorts of future cash flows in respect of adding interest on present value are known as future…

Q: This morning, Mariam Inc invested $800,000 to help fund a company expansion project planned for 4…

A: given, pv = $800,000 n=4  r1= 4.59% r2= 5.59%

Q: Max's Kennels spent $220,000 to refurbish its current facility. The firm borrowed 60 percent of the…

A: We use PMT function to calculate monthly payments

Q: Benford Inc. is planning to open a new sporting goods store in a suburban mall. Benford will lease…

A: Equipment and fixtures  $ 3,50,000.00 Net working capital  $ 3,00,000.00 First-year sales  $…

Q: The firm is formed to purchase and operate a vehicle. The purpose of the vehicle is to operate a…

A: Net present value is the tool to identify the present value of future cash flows to check whether…

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: Develop a spreadsheet to investigate the sensitivity of annual profit (loss) to changes in the…

A: Profitability is depends upon the income and expenses of the period. Changes is anyone of them can…

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: In order to build a new warehouse facility, the regional distributor for Valco Multi-position Valves…

A: Borrowed amount = $1,600,000 Interest rate = 10% Time period = 2 years Future value=Borrowed…

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: Bryson Sciences is planning to purchase a high-powered microscopy machine for $ 381,000 and incur an…

A: With the given information, we can determine the initial investment in the high-powered microscopy…

Q: A group of private investors borrowed $30 million to build 300 new luxury apartments near a large…

A: Borrowed amount = $30000000 Annual interest = 6% Loan is to be repaid in equal annual…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.