A business needs $450,000 in five years. How much should be deposited each quarter in a sinking fund that earns 9% compounded quarterly to have this amount in five years
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A business needs $450,000 in five years. How much should be deposited each quarter in a sinking fund that earns 9% compounded quarterly to have this amount in five years
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- Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate?How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?
- A restaurant is considering the purchase of new tables and chairs for their dining room with an initial investment cost of $515,000, and the restaurant expects an annual net cash flow of $103,000 per year. What is the payback period?A business must raise $57,000 in five years. What should be the size of the owners quarterly payment to a sinking fund paying 8% compounded quarterly?A business must raise $70,000 in 8 years. What should be the size of the owners' quarterly payment to a sinking fund paying 4% compounded quarterly? (Round your answer to the nearest cent.)$
- In order to have ₱1 million in a fund at the end of 15 years, how much must be deposited in the fund every quarter if money can be invested at 10.5% compounded quarterly?Your company estimates it will have to replace a piece of equipment at a cost of P5,800,000 in 5 years. To do this a sinking fund is established by making equal monthly payments at the beginning of each month into an account paying 6.6% compounded monthly. How much should each payment be?Drexter's Shop wants to start a fund to accumulate half of the expected P600,000 cost of expanding their facilities in 8 years. What semiannually account must be paid into the fund earning 6% compounded quarterly in order to reach the target?
- To provide for the automation of a production process in five years, Dominion Chemicals is starting a sinking fund to accumulate $600,000 by the end of the five years. Sinking fund payments are to be made at the beginning of every month. Round the sinking fund payments and the periodic interest earnings to the nearest dollar.a) If the sinking fund earns 7.5% compounded monthly, what monthly payments starting today should be made to the fund? b) How much interest will be earned in the fourth year? c) In what month will the fund pass the halfway point? d) How much interest will be earned in the 35th month?business must raise $50,000 in 9 years. What should the size of the owners’ quarterly payments to a sinking fund paying 2% interest compounded quarterly.Two years from now. My Orly needs P32,000 to liquidate a certain debt. If money is worth 5% compounded quarterly. a) How much must he deposit at the end of each quarter to provide for the payment of the debt? b) Form a sinking fund table showing the growth of the fund for two years.
