Calculate the Present Value of the cash flow shown below. Interest rates are: 6.50% per year, compounded annually Interest rates are: year $0 0 year SO Calculate the Present Value of the cash flow shown below. $3,850 $5,000 $0 0 5.00% per year, compounded annually $0 $6,600 $0 $11,600 so so -$18,000 $0 50 $4,710 $0 -$3,300 $16,600 $21,600 $0 $0 SO $26,600 $6,000 SO $31,600 so so $0 -$7,425 -$7,425 -$17,500 $3,575 $0 $0 $0 10 $36,600 $41,600 $46,600 $51,600 50 10 so so

Calculate the Present Value of the cash flow shown below. Interest rates are: 6.50% per year, compounded annually Interest rates are: year $0 0 year SO Calculate the Present Value of the cash flow shown below. $3,850 $5,000 $0 0 5.00% per year, compounded annually $0 $6,600 $0 $11,600 so so -$18,000 $0 50 $4,710 $0 -$3,300 $16,600 $21,600 $0 $0 SO $26,600 $6,000 SO $31,600 so so $0 -$7,425 -$7,425 -$17,500 $3,575 $0 $0 $0 10 $36,600 $41,600 $46,600 $51,600 50 10 so so

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A man bought a lot worth P1.4M if paid in cash. On the installment basis, he paid a down payment of P200,000; P300,000 at the end of one year; P400,000 at the end of three years, and a final payment at the end of five years. What was the final payment if interest was 19.8%? express in whole number
A small gold mine yielded an equipment of Php. 500,00.00 during its first year of operation. Php 460,000.00 on its second year, and amount decreasing by Php. 40,000.00 every year, what is its equivalent annual yield if interest rate is 10%? Pls include the cash flow diagram
UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS AND DRAW THE CASH FLOW DIAGRAM. NO LONG EXPLANATION NEEDED. FOLLOW THE INSTRUCTIONS CAREFULLY. In a geometric sequence of annual cash flows starting at the EOY zero, the value of A0 is Php 65,217.50 (which is a cash flow). The value of the last term in the series, A10, is Php 263,841. What is the equivalent value of A for years 1 through 10? Let i = 20% per year?
Mr. Dela Cruz bought a piece of property forPhp100,000 downpayment and 10 deferred semiannualpayments of Php8,000 starting 3 years from now. Ifthe interest rate is 12% compounded semiannually,what is the present worth of the property? Use formula not excel thankyou :)
A man who won Php 500,000 in a lottery decided to place 50%of his winning in a trust fund for the college education ofhis son. If the money will earn 14% per year compoundedquarterly, how much will the man have at the end of 10years when his son will be starting his college education? Provide a summary for the answer Thanks!!
A small company heats its building and will spend $8,640in year 1 on natural gas for this purpose. Cost increases of natural gas are expected to be8%per year starting year 2. Their maintenance on the gas furnace is going to be$397.60in the first year and this expense is expected to increase by12%per year starting year 2. If the planning horizon is15 years, what is the total annual equivalent expense for operating and maintaining the furnace? The interest rate is 15%per year (a) The total present worth of operating and maintaining the furnace is $ (Round to nearest dollar) (b) The total annual equivalent expense for operating and maintaining the furnace is $ (Round to nearest dollar)
.Dustin has P15,000 in cash and he would like to invest in business. His estimates of the year by year receipts and disbursements for all purposes are shown in the table: Year Receipts Disbursements 4 P6000 P1000 5 P6200 P1200 6 P7500 P1500 7 P8800 P1800 Find the interest if money is compounded annually.
An investor is considering to buy a 20-year corporate bond. the bond has a face value of $ 1M and pays 6% interest per year in 2 semi-annual payments. thus the purchaser of the bond would receive $ 30 000 every 6 months and in addition he would receive $ 1M at the end of 20 years, along with the last $ 30 000 interest payment. If the investor thought he should receive 8% interest, compounded semi-annually, how much would he be willing to pay for the bond? Ans. ($802,072)
A student plan to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he plans to withdraw P5,000 3 years after his last deposit for the purpose of buying shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10%.
A civil engineer planning for her retirement places 10% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $170,000 and she expects her salary to increase by 2% each year, what will be the future worth of her retirement fund after 13 years provided it earns 6% per year? The future worth of her retirement fund will be $_____?
A wealthy business Mr. Tan wants to start a permanent fund for supporting research directedtoward sustainability. The donor Mr. Henry plans to give equal amounts of money for each of thenext 5 years plus one now, so that P100,000 per year can be withdrawn each year forever. Beginning inyear 6. If the fund earns interest at a rate of 8% per year. How much money must be donated eachtime? What would be the formula and the cashflow diagram?
1. If you borrow money from your friend with simple interest of 12%. Find the present worth of 20,000 which is due at the end of nine months? 2. A Loan of 10,000 is made for a period of (m) months at simple interest of 20%. If the future amount is due at the end of the load period is 4,166. Determine the (m) ? 3. The investmest made by John proved most remunerative. His 1,000,000 savings doubled at 2% per 6 months after (n) years. Determine the (n) ? 4. An investors holds a time payment purchase contact on some machine tools. The contact calls for the payments of 6,800 at the end of each month a 5 years period. The 1st payment is due in one month. He offers to sell you the contact for 330,680 cash today. If you otherwise can make 1% per month on your money, would you accept or reject the investors office?