An engineer purchases an equipment that will be worth Php 20000 in seven years. If the price increase at 9% each year, how much should the engineer invest today to purchase the equipment.
Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…
A: Save 20% of Yearly Income Income in first year = 1,000,000 Savings in first year = 20% * 1,000,000 =…
Q: An investor has purchased an investment which offers him 30 annual payments of dollar 1,200 per…
A: To find the present value of the investment, we will first define where the payments are made. We…
Q: The buyer of a certain machine may pay either Php 20,000 cash down payment and Php 20,000 annually…
A: The present value is used to find the profitability of the project by finding out the discounted…
Q: If you invest $15,000 in a long-term venture, you will receive $1,100 per year forever. The first…
A: Initial cost (I) = $15000 CF1 = $1100 forever starting after 2 years CF2 = $500 forever every 6…
Q: Citra expects to receive RM50,000 in 2 years. Her opportunity cost is 10% compounded monthly. What…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: A house and lot is to be purchased by paying 35,000 pesos monthly for 25 years. The first payment is…
A: The question is related to Cash price of the house and lot if interest rate is 12% converted…
Q: You are considering an investment costing $300,000. If you want to recover the initial investment,…
A: Formula:
Q: Should you buy an asset that will generate income of $1,000 per year for 10 years? The price of the…
A: YEAR CASH FLOW 0 -7500 1 1000 2 1000 3 1000 4 1000 5 1000 6 1000 7 1000 8…
Q: Rental equipment is for sale for $110,000. A prospective buyer estimates he would keep the equipment…
A: Given information: Selling price for equipment : $110,000 A prospective buyers estimates that he…
Q: A company plans to buy new equipment in 6 years. They will start by saving $3,091 at the end of this…
A: The given answer is correct
Q: The annual income from an apartment house is $20,000. The annual expense is estimated to be $2000.…
A: Given:
Q: You buy a new piece of equipment for $11,778, and receive a cash inflow of $2,000 per year for 10…
A: Initial Investment is $11,778 Cash Inflow per year = $2,000 Time Period = 10 Years
Q: A new engineer wants to save up P1,000,000. He will contribute P5,000 annually to an investment…
A: Introduction:- The devotion of an asset to achieve a gain in value through time is referred to as an…
Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…
A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…
Q: A man expects to receive Php 125,000 in eight years. How much is that money worth now considering an…
A: The present value of investment can be calculated using present value table or compound interest…
Q: A businessman wants to have P500, 000 four years from now. What amount should he invest now if it…
A: Given information : Expected amount 500000 Interest rate for first two years 6% Interest rate…
Q: You can purchase an equipment for $4,000. The equipment will provide benefits worth $900 a year. The…
A: We'll compare the price per year with the present value of cash inflows in order to arrive at a…
Q: A businessman wants to have $500,000 four years from now. What amount should he invest now if it…
A: Final amount required = $500000 Let the amount to be invested today = P Interest rate for first 2…
Q: Fatma purchased land for OMR 10,000 If you expect a 12% annual rate of return on your investment…
A: Using excel FV function
Q: You own an oil well that will pay you $25,000 per year for 8 years, with the first payment being…
A: Given information, Annuity amount = $25,000 Time Period = 8 years Fair Return = 7% First Payment…
Q: roy gross is considering an investment that pays 7.6%, compounded annually. How muchwill he have to…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…
A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…
Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…
A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…
Q: The buyer of a certain machine may pay either P50k cash down payment & P10k each for the next 6…
A: We need to compute present value of both the options and option with lowest present value shall be…
Q: Tom Thompson expects to invest $10,000 at 12% and, at the end of a certain period, receive $96,463.…
A: Future value of an annuity: It refers to an amount received or paid equally for a specified number…
Q: An investor has an opportunity to invest in a rental property that willprovide net cash returns of…
A: Calculation of the present value of the cash return is shown below:
Q: singlê investment made today, earning %10 annual interest, will be worth $10,000 at the end of
A: Assuming compounding of interest take place yearly. We need to use this formula…
Q: An investment promises to pay you $80 per year for twenty years and, in addition, at the end of the…
A: The problem is to find the price that will be willing to be paid today for cashflows to be generated…
Q: An engineering technology group just purchased a software for $7,000 now and annual payments of $300…
A: Note:We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Annual maintenance costs for a machine are ₱25,000 for six years. Interest rate is 6%. If…
A: Present value (PV), if the stated rates of return are provided, is the current value of a future…
Q: You plan to buy some undeveloped land that should sell for $285,000 in seven years. What is the most…
A: In this question we need to calculate the most you can pay for the undeveloped land which has future…
Q: You just purchased a parcel of land for 10,000. If you expect a 12% annual rate of return on your…
A: The question is to calculate future value of a investment with annual compounding interest rate.…
Q: A condominium unit can be bought at a down payment of ₱150,000 and a monthly payment of ₱ 21,170 for…
A: In this problem we have to calculate the present value of monthly payment and add to that down…
Q: You plan to buy some undeveloped land that should sell for $180,000 in three years. What is the most…
A: Present Value: The term present value is defined as the current or present day’s value of the amount…
Q: A new roof will cost $12000 . It will be invested in 19 years . If the interest rate is 7% per year…
A: Amount to be invested each year = A r = 7% Accumulated amount = $12000 n = 19 years
Q: In 10 years, you plan to retire and buy a lotin the province. The lot you are looking at currently…
A: The time value of money concept asserts that an amount of money is worth more now than it would be…
Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…
A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…
Q: If a down payment of P600,000 is made on a house and P80,000 a year for the next 12 years is…
A: Down payment (DP) = P600,000 Annual payment (P) = P80,000 Number of annual payments (n) = 12…
Q: nvestor feels that the cash flow from a property will enable his to pay a lender Rs. 15,000 per…
A: The given problem can be solved using PV function in excel. PV function computes loan amount for…
Q: You decide to invest in an instrument that pays 5% annual capitalizable interest each semester. If…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: How much (in $) should the company invest now to have sufficient funds to build the homes in the…
A: Present Worth: It is the present value of the sum of the amount discounted at a specific rate of…
Q: If you invest $2,000 per year for 9 years and earn a 5% return on your investment during that…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: How much will your investment be worth eight years from now? Can the excel and calculator solutions…
A: Information Provided: Interest rate = 6.5% Amount to be received (Year 2) = $5000 Term = 10 years
Q: If you purchase a parcel of land today for $25,000, and you expect it to appreciate 10 percent per…
A: In the given question we need to compute the worth of land after 10 years i.e. future value of land…
Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…
A: The question is based on the concept of future value of money which says that future value of money…
Step by step
Solved in 2 steps
- Gardner Denver Company is considering the purchase of a new piece of factory equipment that will cost $420,000 and will generate $95,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further Instructions on internal rate of return in Excel, see Appendix C.If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%Washington-Pacific (W-P) invested $4 million to buy a tract of land and plant some young pine trees. The trees can be harvested in 10 years, at which time W-P plans to sell the forest at an expected price of $8 million. What is W-P’s expected rate of return?
- Caduceus Company is considering the purchase of a new piece of factory equipment that will cost $565,000 and will generate $135,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return In Excel, see Appendix C.If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
- 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%?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?Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?
- Bouvier Restaurant is considering an investment in a grill that costs $140,000, and will produce annual net cash flows of $21,950 for 8 years. The required rate of return is 6%. Compute the net present value of this investment to determine whether Bouvier should invest in the grill.How much would you invest today in order to receive $30,000 in each of the following (for further instructions on present value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated revenue producing lite of 4 years. Mason has a required rate of return that is 12% and a cost of capital of 11%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?