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1.Question
A maintenance contract is $5,000 per year for 10 years. Assuming 9% annual interest, calculate the present value of this contract. Choose the closest answer.
2. Questions
A purchase of a new machine is being evaluated. If we assume 12% annual interest, what is the Equivalent Uniform Annual Cost? Choose the nearest answer.
| Initial Cost | $30,000 |
| Annual Maintenance | $1,500 |
| Salvage Value | $5,000 |
| Life | 6 years |
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- Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP's MARR is 11 percent. The company is considering three models:ModelFirst CostEconomic LifeYearly Net SavingsSalvage ValueT$1200007 years$45000$20000A$1200006 years$80000$25000X$2100006 years$65000$110000Using the annual worth methodLOADING..., which of the three tube benders should RCMP buy? .Click the icon to view the table of compound interest factors for discrete compounding periods when i=11%. The annual worth of Model T is $ enter your response here. The annual worth of Model A is $ enter your response here. The annual worth of Model X is $ enter your response here. So, the Model ▼ ATX is the better choice to buy.]5. A certain manufacturing plant is being sold and was submitted for bidding. Two bids were submitted by interested buyers. The first bid offered to pay P200,000 each year for 5 years, each payment being made at the beginning of each year. The second bidder offered to pay P120,000 for the first year, P150,000 the second year, P180,000 the third year P200,000 each year for the next 2 years, all payments being made at the beginning of each year. If money is worth 12% compounded annually, which bid should the owner of the plant accept? Show cashflow diagram.Edinburgh Newcastle £000 £000Franchise fee (year 0) 8,700 7,950New buses (year 0) 4,120 3,890Scrap value (year 5) 110 95Forecast net cash inflowsYear 1 3,780 3,500Year 2 4,150 3,850Year 3 4,550 4,200Year 4 5,120 5,150Year 5 4,900 4,950 calculate the payback period for both the…
- ▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 3% is $.(Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $3000 is to be paid then with a corresponding 1% interest rate, the present value of the loan is $.(Round your response to the neareast two decimal place)▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 3% is $.(Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $3000 is to be paid then with a corresponding 1% interest rate, the present value of the loan is $.(Round your response to the neareast two decimal place)a footballer is about to sign a new four year contract. the contract is reported as being worth £6.0m, which is the total wages over the period. which of the following payment packages has the highest present value if the relevant interest rate is 3%? select an answer and submit. for keyboard navigation, use the up/down arrow keys to select an answer. a £1.5m now, £1m after 1 year, £lm after 2 years, £1.3m after 3 years and the remainder after 4 years b £2.1m now, £1.5m after 2 years, £1.2m after 3 years and the remainder after 4 years £3.5m after 1 year, £1.2m after 2 years, £1.lm after 3 years and the remainder after 4 years d all four payment packages have the same present value £1.5m now, £1.5m after 1 year, £1.2m af
- For the following questions, choose the letter of the best answer (Show any work and explanations): 1. A home loan is taken out for $162,000. The loan is for 30 years, with a nominal annual rate of 7.5%,resulting in monthly payments of $1,132.73. The interest portion of the first payment will be what? a) $1,012.50 b) $682.73 c) $120.23 d) Answer cannot be determined without more information 2. A $100,000 asset has a $20,000 salvage value after its 10-year useful life. The depreciation allowanceusing straight-line depreciation is closest to what value? a) $2,000 b) $8,000 c) $10,000 d) $12,000 3. With reference to the straight-line depreciation method, which statement is false? a) The deprecation life (n) is set based on the MACRS property classes. b) An equal amount of depreciation is allocated in each year. c) The book value of the asset decreases by a fixed amount each year. d) The asset is depreciated down to a book value equal to the salvage value. 4. This past year, CLL…Need help urgently Only typed answer needed Handwritten answer not allow On May 1, Emerson Fast bought 10 Manitoba Polar bonds with a coupon rate of 7.875%. The purchase price was 101.375, and the commission was $8 per bond. Manitoba Polar bonds pay interest on April 1 and October 1. a. What is the current yield of the bond? b. What is the total purchase price of the bonds? c. If Emerson sold the bonds on August 1 for 109.50, what are the proceeds from the sale?Answer both part 1 &2 i will rate PART A: Ahmed make an annual contribution of $3,000 to his savings account at the end ofeach month for 10 months. If the account earns 7% interest monthly, how much can be atthe end?PART B:Ahmed buy a gold for $2000 and sell it for $2500. it takes 7 years, what would bethe compound annual rate of return on your investment?
- 15) If money has a time value, then the future value will always be more than the original amount invested. Select one: True False 16) A series have the receipts in year 1 =$ 80000. If the Fees are expected to increase uniformly to a level of $200,000 in nine years. What is the possible value for the gradient? Select one: a. $20000 b. $ 15000 c. $ 30000 d. $ -20000 17) In a cash flow series regarding the gradient: Select one: a. Uniform gradient signifies that an income or disbursement changes by the same amount in each interest period b. Either an increase or decrease in the amount of a cash flow is called the gradient c. The gradient in the cash flow may be positive or negative d. All of the above is correctWhat is the price of a 3 -year, 8.1% coupon rate, $1,000 face value bond that pays interest quarterly if the yield to maturity on similar bonds is 11.9 % What is the yield to maturity of at 9.9% semiannual coupon bond with a face value of $1,000 selling for $894.71 that matures in 11 years? The annual yield to maturity of the bond is: (Select the best choice below.) A.11.62% B.11.039% C.12.201% D.13.131% E.9.528%Title NPBT $100,000: NPAT $70,000: Interest Expense $10,000: Income Tax $30,000: Sales $950,000. Calculate Description NPBT $100,000: NPAT $70,000: Interest Expense $10,000: Income Tax $30,000: Sales $950,000. Calculate the Profit Margin using EBIT:Question 10 options: (a) 7.4% (2)11.6% (3) 13.7% (4)none of the options listed
