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- A loan of P50T whose interest is 15% compounded semiannually, is to be discharged by a series of 10 semiannual payments, the 1st payment to be made 6 months after consummation of the loan. The 1st 6 payments will be P5T each, while the remaining 4 payments will be equal & of such amount that the final payment will liquidate the loan. What is the PV of the 1st 6 payments?Asume you invest $3,500 today in an iveestment that promises to return $7,700 in exactly 10 years. a. Use the present value technique to estiate the IRR on this investment. b. if a minimum anual return of 9% is required would you recommed this investment.A new project is being planned for a study period of 8 years. It will require P250,000 for the start-up and after theend of the first year, P13,500 shall be paid for its innovation. The board then requires to add another modifiedtechnology which will cost P25,000 by the end of the second year. After the end of third year, the project will startto earn P57,500 annually. Calculate the annual effective interest rate using ERR method if the interest rate externalto this project (ε) is 13.75%.
- A new project is being planned for a study period of 8 years. It will require P250,000 for the start-up and after theend of the first year, P13,500 shall be paid for its innovation. The board then requires to add another modifiedtechnology which will cost P25,000 by the end of the second year. After the end of third year, the project will startto earn P57,500 annually. Calculate the annual effective interest rate using ERR method if the interest rate externalto this project (ε) is 13.75%. Please solve using economics formula.The first cost of a fairly large flood control dam is expected to be $5 million. The maintenance cost will be $60,000 per year, and a $100,000 outlay will be required every 5 years. At interest of 10%, find the EUAC of the dam project.ENGINEERING ECONOMICS Bawal Gumamit ng Excel( Don't use Excel) A small company purchased now for 1.15M will lose 75,000 each year for the first 4 years. An additional P400,000 invested in the company during the 4th year will result in a profit of 27,500 from the 5th year through the 15th year. At the end of 15 years, the company can be sold for 1.65M. c. Calculate ERR ϵ = 12% per year.
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