Albert Ang invested ₱88,000 at ABC Credit Union at 12% interest compounded quarterly. What is the effective rate of this investment? Group of answer choices 11.45% 12.35% 11.25% 12.55%
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- Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $14,700 and will produce cash flows as follows: End ofYear Investment A B 1 $ 9,300 $ 0 2 9,300 0 3 9,300 27,900 The present value factors of $1 each year at 15% are: 1 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is: Multiple Choice $(18,344). $8,679. $3,644. $46,244. $13,200Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,400 and will produce cash flows as follows: End ofYear Investment A B 1 $ 8,400 $ 0 2 8,400 0 3 8,400 25,200 The present value factors of $1 each year at 15% are: 1 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is:Xu Salon has a line of credit of $150,000 with an interest rate of 1.625 percent per quarter. The credit line requires that 2.25 percent of the unused portion of the credit line be deposited in a non-interest-bearing account as a compensating balance. Xu Salon's short-term investments are earning .35 percent per quarter. If the line of credit goes unused all year, what is the effective annual interest rate on this arrangement? Assume any funds borrowed or invested use compound interest. Give typing answer with explanation and conclusion
- Honesty Company is investing in 182-day treasury bills with a total fair market value of P2,500,000 for a purchase price of P2,475,000.What is the annualized investment rate (round off your answer to two decimal places)Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each requires an initial investment of $14,700 and will produce cash flows as follows: End of year Investment A Investment B 1 $9300 $0 2 $9300 $0 3 $9300 $27900 The present value factors of $1 each year at 15% are: 1 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment A is: (The answer is $6534 but I do not know how to get there)Crane Telecommunications Corp. has made an investment in another company that will guarantee it a cash flow of $24,500 each year for the next five years. If the company uses a discount rate of 17 percent on its investments, what is the present value of this investment? (Round factor values to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.)
- Blossom Telecommunications Corp. has made an investment in another company that will guarantee it a cash flow of $25,000 each year for the next five years. If the company uses a discount rate of 19 percent on its investments, what is the present value of this investment? (Round factor values to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.)Gossman Corporation is analyzing a capital expenditure that will involve a cash outlay of P104,904. Estimated cash flows are expected to be P36,000 annually for four years. The present value factors for an annuity of P1 for 4 years at interest of 10%, 12%, 14%, and 15% are 3.170, 3.037, 2.914, and 2.855, respectively. The internal rate of return for this investment is? a. 2% b. 2.4% c. 14% d. 3%Please calculate this below (incl. the formula):a. What is PV of $100 received in year 10, with 1% discount rate?b. Hans made investment $10 million with interest rate 6% per annum. What is the value of Hans's investment after 4 years and interest compound annually.
- Palau, Inc. requires all its capital investments to generate an internal rate of return of 14 percent. The company is considering an investment costing P80,000 that is expected to generate equal annual cash inflows for 5 years. To meet the 14 percent minimum acceptable rate of return, the estimated annual cash inflow (ignoring income taxes) is: Group of answer choices P274,648 P154,033 P51,550 P23,303PhP 20,000.00 was invested at simple interest, part at 11% for two years and the rest at 8% for three years. The total interest earned was PhP 4690.00. How much was invested at 11%?The karson transport company currently has net operating income of $508,000 and pays interest expenses of $205,000. The company plans to borrow $1.03 million on which the firm will pay 11 percent interest. The borrowed money will be used to finance an investment that is expected to increase the firm’s net operating income by $404,000 a year. B. What effect will the loan and the investment have on the firm’s time interest earned ratio? The new times interest ratio is Round to two decimal places.
