A municipality decides to purchase a small collection truck that has an expected life of 10 years of Rs. 590,000. Cost of truck is to be borrowed from the local bank and to be paid back in 10 annual payments. Determine the annual instalments on this capital expense if the interest rate is 6.125 %

Q: Starr Company decides to establish a fund that it will use 10 years from now to replace an aging…

A: Future value is the value of the present cash flows in future. Value of the funds in 10 years is the…

Q: Halls Construction is analyzing its capital expenditure proposals for the purchase of equipment in…

A: Capital budgeting decisions are the decisions that are taken by a corporation in relation to a…

Q: EU Corporation plans to construct its own building at the end of 10 years for an estimated cost of…

A: The concept of the time value of money (TVM) states that money accessible now is valued more than a…

Q: A machine is to be purchased for Php155,000; it has an estimated life of 8 years and a salvage value…

A: Sinking Fund: A sinking fund consists of periodic (usually annual) contributions to a fund in order…

Q: A company project needs to establish a fund within a ten-year period by making annual deposits of…

A:

Q: Blue Demon Cycle Shop is considering the purchase of used mopeds to be rented to city tourists.  The…

A: Here Given Information Mopeds Cost =$18,922.41 Annual Cash Flows =$5,000 Time Period =6 Years Cost…

Q: Halls Construction is analyzing its capital expenditure proposals for the purchase of equipment in…

A: Halls Company would compute the payback period for projects A, B, and C. The project(s) having the…

Q: The cost of maintaining a certain permanent monument in Washington, DC occurs as periodic outlays of…

A: Capitalized cost of the maintenance using an interest rate of 8% per year can be calculated by using…

Q: ELJ Corporation plans to construct its own building at the end of 10 years for an estimated cost of…

A: Given: Years =10 Cost = P15,000,000 Interest rate = 13% Future value = P24,000,000

Q: A company project needs to establish a fund within a ten-year period by making annual deposits of…

A: Beginning of the year deposits (B) = P 90000 Let the end of the year deposits = X r = 6.2% n = 10…

Q: Recent sales of some real estate and record profits make it possible for a manufacturer to set aside…

A: Present value of fund (PV) = $ 1,100,000 Interest rate = 6.3% Semi annual rate (r) = 6.3%/2 = 3.15%…

Q: engineering company expects to expand its plant facilities in 6 years at an estimated cost of…

A: a) Solved using Financial Calculator  N = 6 years * 4 = 24 I/Y = 10%/4 = 2.5% FV = 68,000 CPT PMT =…

Q: 3% compounded annually, what was the equivalent uniform annual cost for the 12-year period? Include…

A: An item of expenditure on a capital asset that brings back the asset to its working position is…

Q: A commercial building can be acquired at a downpayment of P 500,000 and a yearly payment of P…

A: Down payment (DP) = P 500,000 Yearly payment (P) = P 100,000 Number of annual payments (n) = 10…

Q: DGE purchased a cement truck for $120,000. It is expected to last N=4 years. The $120,000 was…

A: Working Capital: It is the liquidity level of business to manage day to day business and is…

Q: A motor truck has an original value of $2500, a probable life of 6 years, and a final salvage value…

A: We have; Original Value of machine is $2500 Probable life is 6 years Salvage Value is $200 Interest…

Q: re to made to the fund

A: Money Required (Future Value) = 40,000 Present Value (value at start) = 0 N = 3 years Quarterly…

Q: Makulay ang Buhay Corporation have agreed to shoulder the funds needed for road rehabilitation. At a…

A: It is the equivalent cost and benefit of the asset spread over its life.

Q: A company needs 60,000 in five years to buy a new equipment. In order to accumulate this, s a…

A: Given information : Expected amount 60000 Time period 5 Number of payments 3 Interest rate…

Q: An aggregate crasher is expected to cost P60, 000 and has an estimatedlife of 5 years. Maintenance…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: A transportation agency is purchasing 350 electric trucks can replace their maintenance trucks and…

A: Bonds carry the annual interest to be paid but they need to be paid the face value on the maturity…

Q: he initial cost of a monument installation will be $110,000. The cost of maintaining a certain…

A: initial cost of a monument installation  $  1,10,000.00 cost of maintaining  $     12,000.00…

Q: In 5 years, P18,000 will be needed to pay for a building renovation. In order to generate this sum,…

A: Future Value = Sum of [ Amount * ( 1 + rate )Years ]

Q: A company needs 60,000 in five years to buy a new equipment. In order to accumulate this, sum a…

A: Accumulated amount needed = 60000 after 5 years Let the annual payment = A r = 18%

Q: A company estimates that a certain piece of machinery will have to be replaced in five years' time…

A: Future value of growing annuity = [P/(r-g)] *((1+r)^n - (1+g)^n / (r-g)) P = Initial payment = 2000…

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: A road is constructed at the capital cost of $10 million.  At the end of Year 10, major improvements…

A: Annualized Cost refers to equivalent cost that is incurred on project on annual basis. It is…

Q: Part of the income that a machine generates is put into a sinking fund to pay for replacement of the…

A: Using Excel NPER function

Q: Abc plans to construct an adiitional building at the end of 10 years at an estimated cost of…

A: first calculate the payments for the first 5 years N = 10, FV = 5,000,000, rate = 13%, PV = 0 use…

Q: The local society plans to build a new building with total construction costs 900,000$. 100,000s of…

A:

Q: The management of a condominium association anticipates a capital expenditure of $150,000 in 3 years…

A: Given that, Required Capital Expenditure (FV)=$1,50,000 Duration (n)=3*12=36 Rate of…

Q: Under a government environment incentive plan companies installing air-pollution control equipment…

A: Initial Cost = 500,00 Maintenance Cost in first year = 40,000 Annual Increase = 3,000 Nominal Rate =…

Q: Tyu plans to construct an adiitional building at the end of 10 years at an estimated cost of…

A: Use PMT function in Excel with the following inputs N = 10, PV = 0, FV = 5000000, rate = 13% annual…

Q: In five years, P18,000 will be needed to pay for a building renovation. In order to generate this…

A: Annuity refers to equal payments made in a fund at regular intervals. The amount so deposited…

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

A: Use the MACRS table for the purpose of depreciation as shown below

Q: A specially coated mold for manufacturing tires (MACRS-GDS 3-year property) costs $35,000 and has a…

A: The actual tax cash flow (ATCF) is the cash flow that is received to the organization after adding…

Q: XYZ plans to construct an additional building at the end of 10 years fo an estimated cost of…

A: Here we will use the concept of time value of money. As per the concept of time value of money it is…

Q: The repair costs for some handheld equipment at the office of NAIA is estimated to be P 120,000 in…

A: Office needs to deposit the amount that is equal to the present value of the repair costs for the…

Q: Denver University Copy Center buys three copier machines that each have a useful life of seven years…

A: The sinking fund is formed by the company to set aside some periodically to acquire new copier…

Q: Determine the amount needed now to purchase a machine for P100,000, provide an annual fund of…

A: Initial cost of machine = P 100,000 Annual cost = P 15,000 Life of machine = 10 Years Discount rate…

Q: An initial capital of $25,000 was put up for a new project that will produce an annual income of…

A: Initial Capital = 25000 Annual Income = 8500 Time Period(N) = 5 years Salvage Value = 1000 Annual…

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: The engineers at a design firm have been tapped by an amusement park to design a water sports ride.…

A: Present worth is the present value of cash flows that are expected to occur in the future.

Q: What equal payments (in $) are required every 6 months to accumulate the needed funds for the roof?

A: Sinking fund is an account or fund that is created primarily with the objective of creating periodic…

Q: Starr Company decides to establish a fund that it will use 4 years from now to replace an aging…

A: Working:

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.