M1 1.Calculate the present value for the cost of RM 10,000 which will be spentfor 20 years if the interest:(1)15% per year.(ii)15% per year compounded two times a year.Answer: i) RM 661ii) RM 554.19

Present value = FV / (1+r)^n Where r = interest rate per period n = no of periods FV = Future value…

Answered: Calculate the present value for the…

Calculate the present value for the cost of RM 10,000 which will be spent for 20 years if the interest: (i) 15% per year. 15% per year compounded two times a year. RM66₁ RM 554 10

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 5MCQ: An investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second...

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Question

1.
Calculate the present value for the cost of RM 10,000 which will be spent
for 20 years if the interest:
(1)
15% per year.
(ii)
15% per year compounded two times a year.
Answer: i) RM 661
ii) RM 554.19

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