The father of a Junior High School Student wants to make sure that his son will be able to enroll and finish an engineering course after high school. To secure the future of his son, he plans to make deposits of P50,000 in a bank account every quarter for 5 years. The deposits will be made at the start of the periods. How much money can his son withdraw by the end of the 6th year if the money earns an interest of 10% compounded semi-annually?
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ENGINEERING ECONOMY
UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS LEGIBLE. FOLLOW THE INSTRUCTIONS CAREFULLY.
Draw CASH FLOW DIAGRAMS for the GIVEN AND REQUIRED/FIND.
Begins the solutions by writing the equations/formulas.
Use 2 decimal places and Box the final answer.
The father of a Junior High School Student wants to make sure that his son will be able to enroll and finish an engineering course after high school. To secure the future of his son, he plans to make deposits of P50,000 in a bank account every quarter for 5 years. The deposits will be made at the start of the periods. How much money can his son withdraw by the end of the 6th year if the money earns an interest of 10% compounded semi-annually?
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- Ivan, an industrial engineering student, is working on a homework problem for Engineering Economy. He needs to calculate the PW at 12% of a cash flow series with $1,000 at t = 3, $1,500 at t = 4, and $2,000 at t = 5. If Ivan uses the equation P = 1,000(P|A 12%,3) + 500(P|G 12%,3), where is the P now located?a. t = 4. b. t = 2. c. t = 1. d. t = 0.Answer the following questions by including the appropriate cash flow diagrams, solution, and final answer. 1. A father decides to establish a savings account for his child’s college education on the day his son is born. Any money put into the account will earn an interest rate of 10%. The father will make a series of annual deposits in equal amounts from the child's 1st birthday through the 18th birthday so the child can make four annual withdrawals from the account in the amount of Php 200,000 on each of his 18th, 19th, 20th, and 21st birthdays. Assuming that the first withdrawal will be made on the child’s 18th birthday, calculate the required 18 equal annual deposits.Assume that you are nearing graduation and have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions. Draw time lines for (a) a $2000 lump sum cash flow at the end of year 4, (b) an ordinary annuity of $1000 per year for 5 years, and (c) an uneven cash flow stream of -$450, $1000, $650, $850 and $500 at the end of years 0 through 4. What is the future value of an initial $1000 after 5 years if it is invested in an account paying 5% annual interest? What is the present value of $1000 to be received in 4 years if the appropriate interest rate is 5%? We sometimes need to find out how long it will take a sum of money (or anything else) to grow to some specified amount. For example, if a company's sales for 2020 is $1000 and expected to grow…
- Assume that you are nearing graduation and have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions. Draw time lines for: (a) a $2000 lump sum cash flow at the end of year 4, (b) an ordinary annuity of $1000 per year for 5 years, and (c) an uneven cash flow stream of -$450, $1000, $650, $850 and $500 at the end of years 0 through 4.Please read the scenario below and asnwer the questions that follows. Please show clear working and answers thank you. Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be…Which of the following is a section of a cash flow statement? Select one: a.Fixed costs outflows b.Cash basis accounting systems c.Wage taxes d.EIN Question 22 Question text If you invest $1,525,000 in a business and earn a return of $775,000, what is your ROI? Select one: a.42% b.45% c.51% d.1.96% Question 23 Question text If Jacques invests $20,000 at 10% interest for 3 years, what will the future value of the money be? Select one: a.$26,620.00 b.$6620.00 c.$20,606.02 d.$26,000.00 Question 24 Question text Two common risks to cash flow stability are ________ and ________. Select one: a.credit squeeze; burn rate b.surplus inventory; pilferage c.burn rate; pilferage d.surplus inventory; credit squeeze Question 25 Question text A suggested allowance for contingencies and emergencies at start-up is _____ of estimated start-up costs. Select one: a.5 percent b.10 percent c.25 percent d.40 percent
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- Jade is CEO of InvestCo, a financial advisory firm for the wealthy. Her firm’s WACC is 9.00%. Her firm is investigating two projects, and they have asked you to determine which one to pursue. Project Y requires an initial investment of $132,000, while project Z requires an up-front investment of $122,000. Given the cashflows for each project listed below, answer the following questions. (important: make sure to place negative sign (-) in front of any negative cash flow.) A.) what is the NPV of the project that has the highest NPV? B.) what is the IRR of the project that has the highest IRR? C.) What is the Profitability Index of the Project that has the highest Profitability Index? Year Project Y Project Z 1 62,400 60,400 2 52,900 52,400 3 52,200 41,800 For NPV: write dollar amounts out to the penny with no dollar sign. Make sure you show negative sign (-) to indicate negative NPV. For IRR: interest…ARCI Instruments manufactures a ventilation controller designed for monitoring and controlling carbon monoxide in parking garages, boiler rooms, tunnels, etc. The net cash flow associated with one phase of the operation is shown on the next page. (a) How many possible rate of returnvalues are there for this cash flow series? (b) Find all the rate of return values between 0 and 100% using tabulated factors and a spreadsheet.You are establishing a new warehouse in sparks Nevada to better accommodate your customers in the western half of the U.S .you will have to access a specific amount of cash in a periodic basis as the need rises . What is your best funding option ? A.family and friends B. Intermediate loan C.angel investor D. Trade credit E.Venture Capitalist F. Short term loan G.IPO H. Personal assets I. Long term loan J. Bank line of credit