ENGINEERING ECONOMY UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS LEGIBLE. FOLLOW THE INSTRUCTIONS CAREFULLY. Draw CASH FLOW DIAGRAMS for the GIVEN AND REQUIRED/FIND. Begins the solutions by writing the equations/formulas. Use 2 decimal places and Box the final answer. The father of a Junior High School Student wants to make sure that his son will be able to enroll and finish an engineering course after high school. To secure the future of his son, he plans to make deposits of P50,000 in a bank account every quarter for 5 years. The deposits will be made at the start of the periods. How much money can his son withdraw by the end of the 6th year if the money earns an interest of 10% compounded semi-annually?

ENGINEERING ECONOMY UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS LEGIBLE. FOLLOW THE INSTRUCTIONS CAREFULLY. Draw CASH FLOW DIAGRAMS for the GIVEN AND REQUIRED/FIND. Begins the solutions by writing the equations/formulas. Use 2 decimal places and Box the final answer. The father of a Junior High School Student wants to make sure that his son will be able to enroll and finish an engineering course after high school. To secure the future of his son, he plans to make deposits of P50,000 in a bank account every quarter for 5 years. The deposits will be made at the start of the periods. How much money can his son withdraw by the end of the 6th year if the money earns an interest of 10% compounded semi-annually?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1hM

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ENGINEERING ECONOMY UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS LEGIBLE. FOLLOW THE INSTRUCTIONS CAREFULLY. Draw CASH FLOW DIAGRAMS for the GIVEN AND REQUIRED/FIND. Begins the solutions by writing the equations/formulas. Use 2 decimal places and Box the final answer. The father of a Junior High School Student wants to make sure that his son will be able to enroll and finish an engineering course after high school. To secure the future of his son, he plans to make deposits of P50,000 in a bank account every quarter for 5 years. The deposits will be made at the start of the periods. How much money can his son withdraw by the end of the 6th year if the money earns an interest of 10% compounded semi-annually?
Ivan, an industrial engineering student, is working on a homework problem for Engineering Economy. He needs to calculate the PW at 12% of a cash flow series with $1,000 at t = 3, $1,500 at t = 4, and $2,000 at t = 5. If Ivan uses the equation P = 1,000(P|A 12%,3) + 500(P|G 12%,3), where is the P now located?a. t = 4. b. t = 2. c. t = 1. d. t = 0.
Answer the following questions by including the appropriate cash flow diagrams, solution, and final answer. 1. A father decides to establish a savings account for his child’s college education on the day his son is born. Any money put into the account will earn an interest rate of 10%. The father will make a series of annual deposits in equal amounts from the child's 1st birthday through the 18th birthday so the child can make four annual withdrawals from the account in the amount of Php 200,000 on each of his 18th, 19th, 20th, and 21st birthdays. Assuming that the first withdrawal will be made on the child’s 18th birthday, calculate the required 18 equal annual deposits.
Assume that you are nearing graduation and have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions. Draw time lines for (a) a $2000 lump sum cash flow at the end of year 4, (b) an ordinary annuity of $1000 per year for 5 years, and (c) an uneven cash flow stream of -$450, $1000, $650, $850 and $500 at the end of years 0 through 4. What is the future value of an initial $1000 after 5 years if it is invested in an account paying 5% annual interest? What is the present value of $1000 to be received in 4 years if the appropriate interest rate is 5%? We sometimes need to find out how long it will take a sum of money (or anything else) to grow to some specified amount. For example, if a company's sales for 2020 is $1000 and expected to grow…
Assume that you are nearing graduation and have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions. Draw time lines for: (a) a $2000 lump sum cash flow at the end of year 4, (b) an ordinary annuity of $1000 per year for 5 years, and (c) an uneven cash flow stream of -$450, $1000, $650, $850 and $500 at the end of years 0 through 4.
Please read the scenario below and asnwer the questions that follows. Please show clear working and answers thank you. Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be…
Mr.Andi is a manager at an automation company. As part of his future planning, Mr.Andi plan to manage an investment IDR 100 thousand in the first year and increase this amount is 10% annually. To solve this problem, you have to create a spreadsheet from the data provided to complete your calculations along with the cash flow. Based on the data given: (a) How long will Mr.Andi's account have value in the future of IDR 3,000,000 at a rate of return of 6% per annum? (b) If Mr.Andi counts up to the next 30 years, find the nominal amount in the next 10, 20, and 30 years that Mr. Andi will achieve. The calculation spreadsheet can describe the amount deposited annually.
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Jade is CEO of InvestCo, a financial advisory firm for the wealthy. Her firm’s WACC is 10.00%. Her firm is investigating two projects, and they have asked you to determine which one to pursue. Project D requires an initial investment of $112,000, while project E requires an up-front investment of $98,000. Given the cashflows for each project listed below, answer the following questions. (important: make sure to place negative sign (-) in front of any negative cash flow.) A.) what is the NPV of the project that has the highest NPV? B.) what is the IRR of the project that has the highest IRR? C.) What is the Profitability Index of the Project that has the highest Profitability Index? Year Project D Project E 1 39,400 37,900 2 54,600 51,800 3 46,200 32,400 For NPV: write dollar amounts out to the penny with no dollar sign. Make sure you show negative sign (-) to indicate negative NPV. For IRR: interest…
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Your 13-year old cousin comes to you again to ask more questions about the time value of money (TVM): “Hey cousin, I want to learn about annuities, growing annuities, perpetuities, and growing perpetuities. Can you please explain what they are? What are their differences? Also, I wonder how all these TVM techniques can be used in real life. How are these techniques applied in finance? Can you provide examples?”
Jade is CEO of InvestCo, a financial advisory firm for the wealthy. Her firm’s WACC is 9.00%. Her firm is investigating two projects, and they have asked you to determine which one to pursue. Project Y requires an initial investment of $132,000, while project Z requires an up-front investment of $122,000. Given the cashflows for each project listed below, answer the following questions. (important: make sure to place negative sign (-) in front of any negative cash flow.) A.) what is the NPV of the project that has the highest NPV? B.) what is the IRR of the project that has the highest IRR? C.) What is the Profitability Index of the Project that has the highest Profitability Index? Year Project Y Project Z 1 62,400 60,400 2 52,900 52,400 3 52,200 41,800 For NPV: write dollar amounts out to the penny with no dollar sign. Make sure you show negative sign (-) to indicate negative NPV. For IRR: interest…