Q1 (a) OCBC Bank is offering an interest rate of 7% per annum for fixed depositaccount holder. The minimum deposit amount is RM10,000. If you haddeposited RM20,000 into the fixed deposit account today, how much would itbe worth 10 years later. Compute total returns using compound interest methodand draw the cashflow diagram.(b)An asset cost RM95,000 and has a useful life of 7 years. The salvage value atthe end of 7 years is estimated to be RM10,000. Calculate the annualdepreciation amount and book value using straight line (SL) method.(c)ABC Company Sdn. Bhd want to purchase a labelling machine for producttagging. The machine can be purchased for RM100,000. It requires a minormachine overhaul which cost annually RM3,000. At the end of sixth year, amajor machine overhaul costing RM15,000 will be required. The profit will beresulted in annually RM13,000 for a period of 15 years. This equipment willhave a market value of RM30,000 at the end of year 15. Calculate the singleproject evaluation using Annual Worth AW analysis method, which is preferredif the MARR is 8%.

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Q1 (a) OCBC Bank is offering an interest rate of 7% per annum for fixed deposit account holder. The minimum deposit amount is RM10,000. If you had deposited RM20,000 into the fixed deposit account today, how much would it be worth 10 years later. Compute total returns using compound interest method and draw the cashflow diagram.

Q1 (a) OCBC Bank is offering an interest rate of 7% per annum for fixed deposit account holder. The minimum deposit amount is RM10,000. If you had deposited RM20,000 into the fixed deposit account today, how much would it be worth 10 years later. Compute total returns using compound interest method and draw the cashflow diagram.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 13E

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