On January 15, 2012, Dolan Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, 2016, at an estimated cost of $6,000,000. Dolan plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, 2012. Future value factors are as follows: Future value of 1 at 10% for 5 periods Future value of ordinary annuity of 1 at 10% for 4 periods Future value of annuity due of 1 at 10% for 4 periods Dolan should make four annual deposits of Group of answer choices $1,174,168 $1,077,586. $978,474. $889,522 1.61 4.64 5.11

On January 15, 2012, Dolan Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, 2016, at an estimated cost of $6,000,000. Dolan plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, 2012. Future value factors are as follows: Future value of 1 at 10% for 5 periods Future value of ordinary annuity of 1 at 10% for 4 periods Future value of annuity due of 1 at 10% for 4 periods Dolan should make four annual deposits of Group of answer choices $1,174,168 $1,077,586. $978,474. $889,522 1.61 4.64 5.11

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 20P

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On January 15, 2012, Dolan Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, 2016, at an estimated cost of $5,000,000. Dolan plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, 2012. Future value factors are as follows: Future value of 1 at 10% for 5 periods 1.61 Future value of ordinary annuity of 1 at 10% for 4 periods 4.64 Future value of annuity due of 1 at 10% for 4 periods 5.11 Dolan should make four annual deposits of Group of answer choices $889,522. $978,474. $1,077,586. $1,250,000.
Ayayai Corporation wants to withdraw $125,900 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Required initial investment %24
On March 15, year 1 ABC Corporation adopted a plan to accumulate P1,000,000 by September 1, year 5. ABC plans to make four equal annual deposits to a fund that will learn interest at 10% compounded annually. ABC made the first deposit on September 1, year 1. Future value and future amount factors are as follows: Future value of 1 at P1 at 10% for 4 periods (1.46) , Future amount of ordinary annuity of P1 at 10% for four periods (4.64), Future amount of annuity in advance of P1 at 10% for four periods (5.11). What amount of four annual deposits shall be made?
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Kingbird Corporation wants to withdraw $126,920 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%? Especially confused about what including principal means for the problem.
A company project needs to establish a fund within a ten-year period by making annual deposits of ₱90,000, where deposits are to be made at the beginning of each year. If the company board decides to change the plan and prefers to make the deposits at the end of each each instead, what amount should the annual deposits be to completely establish the fund at the end of the 10-year period? Annual interest is at 6.2%
sinking fund is established such that $12,000 will be available to replace a facility at the end of 10 years. At the end of 4 years, following the fourth uniform payment , management decides to retire the facility at the end of 9 years of life. At an interest rate of 6 percent, compounded annually, what are the payments during the first 4 and last 5 years?
XYZ plans to construct an additional building at the end of 10 years for an estimated cost of P5,000,000.00. To accumulate this amount, it will make equal year-end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building than originally intended to an estimated cost of P8,000,000.00 What should be the annual deposit for the last five years? Please provide CASH FLOW diagram. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Manatee Corporation wants to withdraw $500,000 (including principal) from an investment fund at the end of each year for 12 years. What should be the required initial investment at the beginning of the first year if the fund earns 9%?
A company wishes to spend $40,000 for new equipment and decides to set up a sinking fund to accumulate this money over the 3-year period. If payments are to made to the fund quarterly with interest compounded quarterly at an annual rate of 5%, how large should the payments be?
The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $60,465 and annual net cash flows of $15,000 for each of the nine years of its useful life. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. Determine a present value factor for an annuity of $1 which can be used in determining the internal rate of return. If required, round your answer to three decimal places. b. Using the factor determined in part (a) and the present value of an annuity of $1 table above, determine the internal rate of return for the proposal. %