Answered: How much will be the equivalent worth…

How much will be the equivalent worth of ₱2M invested today for three years at a commercial rate of 10% compounded quarterly?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 3P

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Question

How much will be the equivalent worth of ₱2M invested today for three years at a commercial
rate of 10% compounded quarterly?

1. A manufacturer of toilet flush valves wants to have ₱15,000,000 available 10 years from now so that a new product line can be initiated. If the company plans to deposit money each quarter from now, how much will it have to deposit each year if money is worth 7% compounded quarterly in order to have it available immediately at the end of 10 years?

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