paying PHP17,000 every year for 7 years, each payment being made in the beginning of each year. The seller figured interest at thirteen percent. What was the cash price of the equipment?

Q: A machine worth Php50,000 is expected to last for 3 years. During its operation, a maintenance cost…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: If the interest rate is 8% per year, compounded annually, how much money should the company set…

A: Present value (PV) of money refers to the current price of any future sum of money or streams of…

Q: RYN steel works bought an innovative equipment for steel beam manufacturing. The company expects to…

A: Present worth = Future value / (1+r)^n

Q: The buyer of a certain machine may pay either Php 20,000 cash down payment and Php 20,000 annually…

A: The present value is used to find the profitability of the project by finding out the discounted…

Q: Salalah Methanol Co. has bought some new machinery at a cost of 1250000 OMR. The impact of the new…

A: A capital project is an investment that requires huge capital investment and is expected to be in…

Q: $775000, and will last for 5 years. The expected scrap value at the end of 5th year is $140000.…

A: Since you have multiple subparts we solved the first 3 for you . if you want all please repost with…

Q: A company will borrow a loan to finance a 10-year project that will require an initial installation…

A: Given Information: Initial installation cost - ₱2,500,000 After 2 years - ₱500,000 Regular annual…

Q: A certain manufacturing plant is being sold and was submitted for bidding. Two bids were submitted…

A: The discounted value of future cash flows equals the present value of money. The temporal value…

Q: Blossom company is considering buying a new farm that it plans to operate for 10years. The farm will…

A: The project is expected to last for 10 years with a total initial investment of $11.95 million. Gain…

Q: Should you buy an asset that will generate income of $1,000 per year for 10 years? The price of the…

A: YEAR CASH FLOW      0 -7500 1 1000 2 1000 3 1000 4 1000 5 1000 6 1000 7 1000 8…

Q: Rental equipment is for sale for $110,000. A prospective buyer estimates he would keep the equipment…

A: Given information: Selling price for equipment : $110,000 A prospective buyers estimates that he…

Q: Sosa Excavating Inc. is purchasing a bulldozer. The equipment has a price of $100,000. The…

A: Step1: Calculating the value of total interest that Sosa pay on this installment plan. We have,The…

Q: Hyundai Motor Co. plans to set aside an annual payment of $18,000 per year for 4 years for…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Bonita Industries is purchasing new equipment with a cash cost of $ 211800 for the assembly line.…

A: Present value = $211,800 Annuity = $45,800 Period = 6

Q: Coronado Excavating Inc. is purchasing a bulldozer. The equipment has a price of $107,400. The…

A: Interest Rate -  The fees assessed to the borrower in exchange for the assets taken from the lenders…

Q: what is the maximum amount that the company should pay for the machine today such that the chouices…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: A brand new pick-up truck was bought for Php420,000 downpayment and monthly installments of…

A: Lets understand the basics. When asset is purchased against the some downpayment and monthly…

Q: The Shakey Company can finance the purchase of a new building costing $2 million with a bond issue,…

A: In this problem, S Company wants to buy a new building costing $2 million. It will be purchased by…

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A: Initial cash outlay will include the total cost of machine i.e. purchase cost and installation cost,…

Q: Alpha Company is planning to invest in a machine, the use of which will resultin the following:•…

A:

Q: Sams pays a delivery firm to distribute products. Delivery revenues are 30000 per year. he can buy a…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: The TV company has made an investment in video and recording equipment that costs P106,700. The…

A: Average accounting rate of return = Average net profit / Average investment  0.10 = Average net…

Q: Ten years ago, Nana Recovery purchased an equipment to move disabled tractors for Php285,000. The…

A: NPV means PV of net benefits which will arise from the project over the life of the project. It is…

Q: The Shakey Company can finance the purchase of a new building costing $2 million with a bond issue,…

A: The question is based on the concept of comparison between buy and lease decision of fixed asset in…

Q: A company is considering an investment in equipment that can produce more efficiently than the…

A: Payback period is the number of years under which original investment amount can be recovered.

Q: One year ago, JK Mfg. deposited $20,500 in an investment account for the purpose of buying new…

A:

Q: Grouper Excavating Inc. is purchasing a bulldozer. The equipment has a price of $90,500. The…

A: Total interest=Total Payment-Amount Borrowed   Annual Payment=Amount borrowedPresent value annuity…

Q: A firm is buying an adjacent 10-acre parcel for a future plant expansion. The price has been set at…

A: The cost of the entire plot can be calculated as: Total Cost = $ 30,000/acre × 10 acreTotal Cost = $…

Q: The VEEtile company aims to have enough money to invest into a new grader equipment in 4 years. If…

A: In case of simple interest, interest will be same for all the 4 years as there is no compounding at…

Q: A printing press machine has a cash equivalent of P250,000. For the first three years, it will…

A: Given Investment = P 250,000 Profit each year = P20,000 MARR = 7% EARR =15%

Q: Alpha Company is planning to invest in a machine, the use of which will result in the following:•…

A: Annual revenue $10000 Increase $5000 p.a till 9 years Year 10 onward revenue - $52000 p.a MARR - 10%…

Q: Super Sonics Entertainment is considering borrowing money at 11 percent and purchasing a machine…

A: Net present value is a capital budgeting technique which helps in analyzing whether the capital…

Q: Kermit is considering purchasing a new computer system. The purchase price is $141,209. Kermit will…

A: Net Present Value is defined as the present value of the cash flows of the company at required rate…

Q: A company makes fixed annual payments to a sinking fund to replace equipment in five years’ time.…

A: Sinking fund is a fund which is established for the purpose of collecting an amount. This amount can…

Q: Camden Limited is company which specializes in the manufacture of large scale replacement parts for…

A: Investment              R 4,00,00,000.00 Net CashFlow              R 1,60,00,000.00 Salvage…

Q: Raguna Co. is considering adding a new machine to its production line. The machine costs RM3,000,000…

A: Annual operating cash flows = NOPAT + depreciation NOPAT is net operating profit after tax.…

Q: Manila Wines, Inc. is considering the purchase of a P1,500,000 machine that is expected to have…

A: The Payback Period is one of the traditional techniques of capital budgeting that does not take into…

Q: A company is considering replacing a machine that was bought six years ago for $50,000. The machine,…

A: Assets: It is a resource that will generate future benefits and revenue for the company. It include…

Q: A company that manufactures digital pressure gauges just borrowed $10,000,000 with the understanding…

A: Annual payment (A)= $2,000,000 Number of years (n)= 4 Interest rate (i)= 8% per year How much will…

Q: The Longganisa Builders Co. agreed to pay P100,000.00 for a new bulldozer with an expected life of…

A: Increase in annual earnings (A) = P 12000 r = 12% n = 20 years

Q: Blackstone Company purchased a new software system costing $35,000. To finance the purchase,…

A: Calculate requirement payment amount:Principal = PR = rate of interest (10% / 2) => 5%N = number…

Q: A construction company wishes to buy a fleet of scrapers to be used in a highway project, which will…

A: Time value of money :— According to this concept, value of money in present day is more than the…

Q: You are considering a large CNC equipment purchase. You will need an initial deposit of $165,000.…

A: The ROR or rate of return is a profitability ratio that is calculated by dividing the net profit by…

Q: RKE & Associates is considering the purchase of a building it currently leases for $30,000 per…

A: Investment recovery Investment Amount / Lease per year = PVAF ( Interest rate, years )

Q: A machine worth Php50,035 is expected to last for 3 years. During its operation, a maintenance cost…

A: Annual interest rate = 16% Quarterly interest rate = 16%/4 = 4% Cost of machine = Php 50,035…

Q: Geo-Star Manufacturing Company is considering a new investment in a punch-press machine that will…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: In order to build a new warehouse facility, the regional distributor for Valco Multi-position Valves…

A: Borrowed amount = $1,600,000 Interest rate = 10% Time period = 2 years Future value=Borrowed…

Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.