a)A loan of $15,000 is made today at an interest rate of 18% compounded weekly, a payment of $3000 is made 6 years later. What is the amount still owed at the end of year nine?

Q: pplegate Industries is planning to expand its production facility in a few years. New plant…

A: Number of Years = 3.5 Periods per year = 4 (interest rate compounded quarterly) Nominal rate= 8%…

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

A: working notes: Payback period = $204,000 / 30,000 = 6.8 Years 125,080-70,000 =55,080 Accounting rate…

Q: The Bread Company is planning to purchase a new machine that it will depreciate on straight-line…

A: The Accounting rate of retrun is calculated with the help of following formula ARR = Average Annual…

Q: The owner of a business is considering investing $55,000 in new equipment. He estimates that the net…

A: a) Computation:

Q: A factory company has 5 years to prepare for relocating in another place. The equipment for loading…

A: Capital rate per year can be defined as the amount to be capitalized on annual basis. It is…

Q: 1. A loan is being handed out in multiple increasing semi-annual releases. The first release is…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A Company is contemplating the purchase of a new milling machine. The purchase price of the new…

A: Answer) The rate of return on investment will be the internal rate of return. This the rate at which…

Q: A company will borrow a loan to finance a 10-year project that will require an initial installation…

A: Given Information: Initial installation cost - ₱2,500,000 After 2 years - ₱500,000 Regular annual…

Q: how would i find the payback period

A:

Q: The Dominion Freight Company has invested $50,000 in a new sorting machine that is expected to…

A: NPV is an abbreviation for Net Present Value. For example, NPV helps us to know the present value of…

Q: Applegate Industries is planning to expand its production facility in a few years. New plant…

A: Future Value = Present Value x Future Value Factor

Q: A// A civil engineer wants to invest $ 72000 in a new loader, if the income from temporary leasing…

A: Given information: Investment amount : $72,000 Expected income : $14,000 Interest rate : 14%

Q: An engineering company needs to decide whether or not to build a new factory. The costs of building…

A: The question is based on the concept of Financial Accounting. As per the Bartleby guidelines we are…

Q: A hydraulic lift is purchased for a warehouse for $60,000. This lift is expected to generate $7000…

A: Rate of Return on Investment = Net income/Total Investment Depreciation Expense = Cost of the…

Q: Alpha Company is planning to invest in a machine, the use of which will resultin the following:•…

A:

Q: A contractor estimates purchase of a new bulldozer will increase earnings $20,000 per year for each…

A: Increase in earning per year = $ 20,000 Period = 10  Years Increase in expenses = $ 2000 Annual…

Q: The NUBD Co. is planning to purchase a new machine for P300,000. The payback period is expected to…

A: Cost of new Machine = P300,000 Depreciation = P50,000 Expected Payback Period = 5 Years

Q: XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase…

A: Cost of the building additional manufacturing plant is $1,230,000 Loan to the company is equal to…

Q: A firm can purchase a centrifugal separator​ (5-year MACRS​ property) for​$17,000. The estimated…

A: Given Data: Investment ($) 17000 Useful life 6 Salvage value($) 3000 Tax rate 23% MARR 12%…

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 drill press was purchased for $300,000. It was expected to last 10 years and to have a salvage…

A: Computation:

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: A new alloy can be produced by Process A, which costs $200,000 to implement. The operating cost will…

A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…

Q: At an interest rate of 0.06 per year, the present worth of the maintenance cost is nearest to

A: Given PV=5000 Increasing =500 n=15 r=0.06 or 6%

Q: An equipment is expected to cost 200,000$ to be used for 3 years, and to have an annual operating…

A: Annual worth of a project means the amount which is going to be generated by the project on an…

Q: Ava Company projects an increase in net income of $34,766 each year for the next five years if it…

A: Annual rate of return on the investment = Net income / Initial investment

Q: How much must be deposited

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: A small analytical laboratory borrowed $26,000 (the original amount or the principal) at an interest…

A: Compound interest is referred as the interest which is calculated on principal amount which involves…

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: The NUBD Co. is planning to purchase a new machine for P300,000. The payback period is expected to…

A:

Q: A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two,…

A: Answer -  Given,  Maintenance Cost = $5000 Gradient G = $500 I = 5%

Q: A mining firm makes annual deposits of $400,000 into a reclamation fund for 25 years. If the firm…

A: Interest: It can be defined as a payment or a charge that is made by the borrower to a lender.

Q: A building company plans to build a new warehouse. The cost of building the warehouse is an initial…

A: Initial Investment  $   -15,00,000.00 Cost in 1st Quarter  $     -2,50,000.00 Cost in 2nd…

Q: Assume that a company purchased a new machine for $19,000 that has a salvage value of $3,000 at the…

A: Present value of cash inflow = Present value of annual cash inflow + Present value of residual value…

Q: A firm is considering an investment in new equipment that has the following information. Purchase…

A: Depreciation under Straight Line Method = (Purchase Cost - Salvage Value) / Useful Life Purchase…

Q: Yejen Industries Ltd. invested $10,000,000 in manufacturing equipment for producing small…

A: Investment = 10,000,000 Interest Rate = 15% Time Period = 7 years

Q: The maintenance cost of a machine this year is expected to be P5, 000. The cost will increase P1,…

A: Maintenance cost at year end = P 5,000 Annual increase in cost for next 4 years = P 1000 Interest…

Q: s of $40,000 each year, the cash payback period is

A: Cash Payback Period = Initial Investment/Annual Cash Inflows      = 240000/40000      = 6 YEARS

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 firm can purchase a centrifugal separator​ (5-year MACRS​ property) for ​$22,000. The estimated…

A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)

Q: An engineer buys a piece of lot for P250,000 down payment and 10 deferred semi-annual payments of…

A: Annual interest rate = 10% Quarterly interest rate = 10%/4 = 2.5% Down payment = P 250,000 Semi…

Q: An investment of P3M can be made in a business that will produce uniform annual revenue of P1.2M for…

A: Required Return = 20% Cash Flows: Year Cash Flow Reference 0 -3,000,000 First Cost 1 950,000…

Q: A construction company wishes to buy a fleet of scrapers to be used in a highway project, which will…

A: Time value of money :— According to this concept, value of money in present day is more than the…

Q: The company buys an asset that costs $11,200 and returns net cash flow of $160 per month for 3…

A: NPV is the present value of cash inflows less present value of cash outflows. IRR is the discount…

Q: Assume that a money manager is considering the buy of a $35,000 machine and that he appraises that…

A: The question is to take a decision to buy a machine based on expected interest rate earing and…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.