FUTURE VALUE. Miss Ruth Encarnación Plateros y Del Valle, has to pay off a debt at the end of year 6. Ruth Encarnación will receive a flow of 35,000.00 per year, at the end of each period. She wants to know the amount equivalent to the future value of this series of 6 flows, considering a capitalization rate of 9%.
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PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS
1.-
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- Using the given situations, compute for the future value at the end of term of each scenario. 1. Your mother invested Php18 000 in government securities that yields 6% annually for two years.Your friend already has $20,000 in an investment account. In addition to this amount, she is considering investing $5,000 at the end of year 1 with this amount growing at 6% p.a. until the end of year 5. If the interest rate earned by the investment account is expected to be 8% p.a., the total amount she will have accumulated in this account at the end of five years is closest to: Group of answer choices $29,387. $32,776. $62,162. $66,120.A woman is considering giving an endowment to a university in order to provide payments of P55,000, P85,000, respectively, at the end of the first, and second semiannual during a year. If the interest rate is 12% compounded quarterly, what is the capitalized equivalent that must be deposited now so that the semiannual payments can be repeated forever? Draw the cash flow diagram and use interest rate with five decimal places.
- You are offered an asset that costs $150,000 and has cash flows of $1,350 at the end of every month for the next 6years. Assume the cost of capital is 9percent per year.a. What is the IRR of the asset?b. What is the NPV of the asset? c. If your cost of capital is 12percent, should you purchase it? (Setup cash flows in Excel spreadsheets and uses the following Excel Financial functions, IRR, and NPV to derive your answers.A singer finds herself with an extra $5,000 at the end of the year. Calculate the annual rates of return for each of the following investments (rounding to the nearest 0.1% where needed). b.) She has a $12,000 of student loan debt, on which she is charged an annual yield of 6.8%. She could reduce this debt to $7,000. Rate of return?Your friend is considering buying a property for Sh, 50,000. If purchased the property will be financed 60% by debt at 15% p.a. payable monthly for 5 years. The property will generate NOI of Sh, 5,000 and Sh, 8,000 in year 1 and 2 respectively. The property can be sold for Sh, 60,000 at the end of year 2. The required rate of return is 25%. Calculate the BTIRR and advise. (Show your workings to a reasonable extent)
- Vidhi is investing in some rental property in Collegeville and is investigating her income from the investment. She knows the rental revenue will increase each year, but so will the maintenance expenses. She has been able to generate the data that follows regarding this investment opportunity. Assume that all cash flows occur at the end of each year and that the purchase andsale of this property are not relevant to the study. If Vidhi’s MARR = 6% per year, what is the FW of Vidhi’s projected net income?Mrs. Santos placed an amount of 9,700 Php in an investment that pays an interest rate of 12%, compounded semi-annually. She wants her money to grow to a total amount of 50,000 Php. Then what is the total amount or the future value? And After how many years will his investment grow from 9,700 to 50,000?Mitchell Investments has offered you the following investment opportunity: $7,000 at the end of each year for the first 7 years, plus $6,000 at the end of each year from years 8 through 14, plus $3,000 at the end of each year from years 15 through 21. Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest dollar. How much would you be willing to pay for this investment if you required a 8 percent rate of return?$ If the payments were received at the beginning of each year, what would you be willing to pay for this investment?$
- Renata converted the payment of her ₱50,000 debt to five (5) equal payments at the end of each year. If there is an interest rate of 10% per year, determine the present worth and future worth of the annual payments. What is the value of the five (5) annual payments at the end of the third period? Include the cash flow diagram in your solution.Micheal is considering a capital investment that costs $540,000 and will provide net cash inflows for three years. Using a hurdle rate of 8%, find the Net Present Value of the investment.PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS (only if it is neccesary) 6.-Which is more convenient: to invest in a cooperative society that guarantees to double the invested capital every 10 years, or to deposit in a savings account that offers 7% capitalized quarterly? Note:In the image, this is the original exercise, it is in Spanish, but it is easy to understand.