San Miguel Brewery entered into a 10-year contract for raw materials which requires a payment P100,000 initially and P20,000 per year beginning at the end of the 5th year. The company made unexpected profits and asked that it will be allowed to make a lump sum payment at the end of the 3rd year to pay off the remainder of the contract. What lump sum is necessary if the interest rate is 8%? Show cashflow diagram.

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

Q: company wants to buy a machine with a cash sale price of 750,000 TL. The machine is economical life…

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Q: John Walker Company is planning to buy a new machine costing Php2,000,000 with a useful life of five…

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Q: An equipment was purchased for P100,000 cash and the balance will be paid at the end of each quarter…

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Q: Don Adams Breweries is considering an expansion project with an investment of P1,500,000. The…

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A: PV is used to calculate the existing value of future cash flows for decision making.

Q: 4. We-Clean-U, Inc., expects to receive $65,000 each year for 5 years from the sale of its newest…

A: Annual Depreciation (straight line) = Cost - SalvageUseful life = 150,000 - 50005 = 29,000 Annual…

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A:

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Q: Based on this information the payback period is:

A: Annual cash flow=Depreciation+Net income =(10000+5000)=$15000

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Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.