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A: Amount Invested = RM 50,000 Amount gro in 15 years = RM 406,855 Years(n) =15 Interest rate = r% let…
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A: The number of years required can be calculated with the help of future value function
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Q: The annual operating and maintenance (O&M) expenses of a company are $195,000 at EOY1 decreasing by…
A: Future equivalent can be calculated by using this equation Future equivalent =Annual cost(1+Interest…
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A: Since you have posted multiple questions, we will be solving the first question as per our…
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A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
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A:
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A: Investment = 565,000 Annual Income = 55,000
Q: The annual operating and maintenance (O&M) expenses of a company are $195,000 at EOY 1 decreasing by…
A: Interpretation: Annual Operating and Maintenance Expenses at end of year 1 = $195,000 Annual…
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A: Future value refers to the value of the current asset on some future date based on the growth…
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A: The present value of investment can be calculated using the below excel formula:
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A: Given: Investment = $2,500,000 Investment for every 3 months Interest rate = 10.5%
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A: Year Balance 0 5000.00 1 5375.00 2 5697.50 3 5925.40
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A: Net present worth of investment = PV of future cash inflows - initial cost PV is given by PV =…
Q: The annual operating and maintenance (O&M) expenses of a company are $195,000 at EOY 1 decreasing by…
A: Future equivalent is calculated as: =Annual Cost*(1+Rate of Interest)Year
Q: d) ABC Company wishes to invest a sum of money today in an investment that grows at the rate 12% per…
A: Present value annuity Annuity is a series of equal cash flows at equal interval over a specified…
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A: Future value (FV) = $ 100,000 Annual interest rate (r) = 10% Period (n) = 25 Years
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A: Present value is referred to as the present worth of the investment amount which is discounted at an…
Q: How many years will the following take? a. $500 to grow to $1,039.50 if it's invested at 5 percent…
A: We need to use excel NPER formula to calculate number of periods/years Formula is…
Q: An investor is presented with an investment proposal which produces a continuous income stream of…
A: Future Value is referred as the current asset value that will be changed at future date on the basis…
Q: What is the payback period for an investment of $10000 with net revenues as follows: year 1: $5000,…
A: Payback period: Payback period is the length of time in which an investment reaches its break-even…
Q: What rate of interest compounded annually is involved if:
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A: Annual worth is the value of benefits and costs that would be incurred over a specific time period…
Q: How long will it take the money to double itself if invested at 16% compounded quarterly? In how…
A: Convert 16% compounded quarterly to its equivalent interest rate for annual interval. Here, 'r'…
Q: How many years will it take for $500 to grow to $1039.50 if it's invested at 5 percent…
A: FV or Future value = PV or present value * (1+interest rate)^n To solve for n we can use the NPER…
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A: Answer:- 1 13.97 % higher is Net Operating Income in Year 5 vs Year 1. Notes:- Lets' assume…
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A: The answer is given in the next sheet:
Q: ong will it take a $2000 investment to grow to $2501.50 if it earns 4.5% co
A: If there is more compounding the money grow much faster because effective rate is more.
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A: The price o the investment is calculated as the present value of cash flows.
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A: The interest rate is the rate at which the investment will earn money over the period of investment.
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- Q1 (A). An investment of $100 produces rate of return as follows In year 1: a gain of 10 percent In year 2: a loss of percent In year 3: a loss of 8 percent In year 4: a gain of 3 percent. Calculate the value of the investment at the end of the fourth year and calculate the mean annual rate of return.If the net working capital required is 83.3 and the difference between current assets and current liabilities is 70, then what is the contingency rate? Select one: a. 0.190 b. 1.190 c. 0.160 d. All the given choices are not correct e. 0.27 Use the following information from Salalah Mills Company to calculate Compounded Annual Growth Rate (CAGR). Beginning value=OMR. 590, End of Year 1= OMR 610, End of Year 2=OMR 640, End of Year 3=OMR 660, End of Year 4= OMR 680. Select one: a. None of the options b. 3.61% c. 2.35% d. 2.50% e. 3.10%( Compound value solving for n) How many years will the following take? Options: a) $550 to grow to $1,049.50 if invested at 6 percent compounded annually b)$37 to grow to $63.87 if invested at 9 percent compounded annually c)$110 to grow to $398.60 if invested at 18 percent compounded annually d)$56 to grow to $89.66 if invested at 3 percent compounded annually
- Given the initial investment in a factory processing equipment as Ghc500,037. Let the opportunity cost of capital for the industry be 10% p.a. Assuming that the equipment is capable of generating an after-tax returns of Ghc115,000 for the first 5 years and Ghc65000 for the 6th year and Ghc53400 for the 7th year. a. Find the Net Present Value (NPV) b. Determine the Internal Rate of Return c. Identify three ways in which the Net Present value is superior to the Internal Rate ofQ1 (A). An investment of $100 produces rate of return as followsIn year 1: a gain of 10 percentIn year 2: a loss of 5% percentIn year 3: a loss of 8 percentIn year 4: a gain of 3 percent.Calculate the value of the investment at the end of the fourth year and calculate the mean annual rate of return.Q1 (B). What is more important for a firm–profit maximization or value maximization? What issues or conflict of interest can come up between owners and managers and how can they be solved? Q2 (A). On January 12, 2008 Best buy purchases a lot for $48000. The business made a partial payment of $10000 once every thirty days, beginning February 11. On June 11 it plan to make the last payment plus the interest. If the rate of interest is 8%, what is the amount due?Q2 (B). An instrument having a face value of $1000 is discounted at 6% for three years and two months. Find the proceeds and compound discount.Q2 (C). You have an outstanding loan currently. The bank requires you to pay in three…Given the initial investment in a factory processing equipment as Ghc500,037. Let the opportunity cost of capital for the industry be 10% p.a. Assuming that the equipment is capable of generating an after-tax returns of Ghc115,000 for the first 5 years and Ghc65000 for the 6th year and Ghc53400 for the 7th year. Find the Net Present Value (NPV) Determine the Internal Rate of Return Identify three ways in which the Net Present value is superior to the Internal Rate of return as investment criteria
- The data required for a new investment are calculated as follows: Cost of the investment: 10.000.000 $ Annual growth rate expected from cash flows is 10% Cost of capital (discount rate): 25% Economic life of the investment: 5 years Tax rate: 40% Normal depreciation method is applied. If the firm is expected of investment every year for 5 years, the depreciation and pre-tax profit (AVOK) will be 7,000,000 TL, how much will the net current value of investment will beb1. F = Pert , which assumes continuous compounding, says that the Future value (F) of an amount (P) invested today at an annual rate (r), expressed as a decimal for the time (t), in years is given by the function. Thus if you invested $100 at the annual rate of 5 1/2% for 6 years and 3 months you would get back (at the end of the time), F = $100e(0.055)(6.25) = $100e(0.3438) = $100(1.4102) = $141.02. If you invest $15000 today, what amount does the formula say you will get back if you leave it for 5 years and 3 months in a savings account paying 4 1/2% annually?Assuming a cost of capital of 5% and that $60,000 is the correct profit estimate each year for the next 10 years, what is the IRR if NPV=463,304 a. 32.0% b. 8.1% c. 21.0% d. 2.8%
- A financial investment equal to BRL 100,000.00 allows a withdrawal of BRL 20,000.00 in the first year and an annual growth of 2% in the other withdrawals, up to the tenth year. Get the internal rate of return for this applicationAn investment of $80,000 yields a net income of $10,000 per year. How many years does it toketo recover the initial investment ot nominol interest of 6.5% compounded quarterly? You canuse the spreadsheet functions to solve this question or trial and error procedurea. 16 b.12c.15d.14 e.11A company is thinking in investing in one of two potential new products for sale. The projections are as follows: year Revenue/cost £ (Product S) Revenue/cost £ (Product V) 0 (150,000) outlay (150,000) outlay 1 14000 15000 2 24000 25333 3 44000 52000 4 84000 63333 a) Calculate the payback period for both products in years and months, not as a decimal. Please present answer to nearest month.b) Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%.c) Which product should be chosen and why?d) Calculate the IRR for Product V only using 1% and 17% to 2 d.p.e) Outline the advantages and disadvantages of the IRR and payback using appropriate academic sources.
