Q) Compare the alternatives shown below on the basis of a future worth analysis, using an interest rate of 8% per year. Choose option A. A=-78983.65 B= -25193.45 B. A= 38987.65 B= 39125.45 C. A= 87983.65 B= 52193.45

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Q: The value of the future worth for alternative A at an interest rate of 86 per year is closest to:

A: Information Provided: First Cost = -$23,000 Annual operating costs = -$4000 Salvage value = $3000…

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A: The concept used:

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A: Present value can be calculated using following formula of simple interest = final amount…

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A: Details given in the question are as follows: Annual payment = $1000 Time period (number of periods)…

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A: A) There are three options, Options 2 and 3 both will pay $50 every six months. But option 2 will…

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A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

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A: Annual deposit for 3 years = $ 1000 Annual interest rate = 5% Future value period = 4 Years

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A: Note: As per our guidelines, we can only solve three subparts at once. We will answer the first…

Q: An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $400…

A: Year Payment 1 150 2 150 3 150 4 250 5 400 6 600   Interest rate = 8%

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A: The questions are multiple choice questions. Required  Choose the Correct Option.

Q: Solve the questions below: a. What is the future value of $1,750 in 3 years at an interest rate of 4…

A: Future value is the value of present investment in future after compounding of the present cash…

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A: Interest rates: To Find: Present value in each case

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A: Time Value of Money: The time value of money (TVM) is the concept that money you have now is worth…

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A: Future value: The Future value is the value of a current value at a future date based on an Interest…

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A: Future Worth: It is the future value of the project's cashflows made over the period.  It is…

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A: Given: Future value (A) =$5000.00 Rate (r) = 15% = 0.15 Time t=312=0.25

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A: The Present Value   is the current value of a future amount i.e.,   it is the amount to be invested…

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A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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A: Discounting: It implies to a process of converting the future value of cash flows into present…

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A: OPTION A Present value formula:

Q: 1) Consider the following timeline where the firm requires the annuity to provide a minimum return…

A: Future value by time line method is calculated by calculating future value is individual cash flows.…

Q: Compare the alternatives below using Future Worth analysis and applying an interest rate of 8% per…

A: Information Provided: Interest rate = 8% Alternative P: Initial cost = -$23,000 Annual operating…

Q: 3. Your investment will pay $500 at the beginning of each of first 2 years, $100 at the end of…

A: Present value can be calculated by using this equation PV =FV/(1+r)n and  FV =PV(1+r)n where PV…

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A: Here, Given Scenario: Concept Applied:

Q: If you are expecting to get OMR 10240 at the end of 3 years. Calculate its present value if the…

A: Present value of an investment refers to the sum amount of money that will be required today in…

Q: You have a choice between receiving $550 now or $570 in six months' time. Current interest rates are…

A: The present value is the current value of a future cash flow at a certain rate of interest and time…

Q: If $43,000 is invested now, which of the following value is closest to the equivalent future dollars…

A: Time value It tells money received today has more worth than that of receiving the same value later…

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A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

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A: Since you have asked multiple questions , we will solve the first question for you. If you want any…

Q: You can choose to take $105,000 in 11 years or $47,000 today. At an interest rate of 9 percent, what…

A: Present value = Future cash flow / ( 1 + Interest rate )

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A: Present value amount refers to the values of money in current period for all future expected cash…

Q: What is the present value of an investment that pays $190 at the end of year 1, $107 at the year of…

A: Present Value is calculate by discounting the future cash flows. Present Value = Future Cash Flows *…

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Q: Consider the following alternatives: i. $100 received in one year ii. $230 received in 5 years iii.…

A: Present Value = Future Value(1+i)n where, i= Interest rate n= period