the first question is using rule 72: If the value of land in an area is increasing 6% a year, how long will it take for property values to double?my other question is computing time value of money using time values of money table: The future value of $450 six years from now at 7%.I do not understand how to figure these out with the tables or how to start solving them.

Q: Your project will give you a rate of return of 100% over 15 years. Is this a lot or a little? How…

A: Effective Rate is real rate at which investment value will appreciate over a given period. It shows…

Q: The value of business, currently priced at 100000 Rial, is expected to increase by 20% a year.…

A: Given information: Current Price : 100,000 Rial Increase every year : 20%

Q: : identify the values for the variables, in write an equation that can be used to find the amount of…

A: Future Value: It is the future worth of the present sum of the amount and is estimated by the…

Q: According to the Rule of 72, what must the return on an investment be to double an initial…

A: Investors have different options to make investments, and the motive behind investments is to…

Q: You buy a house that costs $10,000. Its annual maintenance cost = $100/year. After 5 years, you can…

A: Given: Initial cost = $10,000 Maintenance cost = $100 Years = 5 Year 5 sale value = $20,000

Q: You are planning to purchase a farmhouse in the Gippsland area, as the current property prices are…

A: Future value is an estimated and expected value of investment made. These investments could be done…

Q: The price of land near a beach is expected to increase 8 % yearly. If the current price RM 13 per…

A: Current price (CP) = RM 13 Annual increase (g) = 8% Period (n) = 5 Years

Q: You are buying an investment property for $362,854 today. Through research, you have determined that…

A: It can be calculated using =NPER(rate,pmt,pv,[fv],[type]) Rate The interest rate for the loan. Nper…

Q: What is the present value of an investment of $5,000 per year for 8 years with 10% interest

A: Given information : Amount per year = $5,000 Number of years = 8 Annual interest rate = 10%

Q: rate is 21%. If you sell the machine today (after three years of depreciation) for $794,000, what is…

A: Incremental Cash Flow: It is the additional operating cash flow received by the firm for taking on…

Q: A new computer system will require an initial outlay of $20,500, but it will increase the firm’s…

A: a) NPV is $1,689.82. Computation of NPV: Since the NPV is positive the system is worth installing.

Q: You estimate that you can save $8,800 by selling your home yourself rather than using a real estate…

A: The question gives the following information:

Q: Assume the cost of homeland security border fence is $3 million per mile. If the life of such a…

A:

Q: Assume that you are valuing an infinitely lived asset that pays $350 at the end of each year. What…

A: Infinite lived asset means asset has no maturity life and we receive annual cash flow at the end of…

Q: If you invest $11,000 today, how much will you have in each of the following scenarios? (Click here…

A: The future value of a present value is the value of that amount after taking into account the time…

Q: Let's say you have a project which will cost $25mm to build or buy.  It will produce after-tax cash…

A: IRR refers to internal rate of return. It is an important concept in corporate finance. It is used…

Q: Which is the correct answer? Use the following table for this question Present value of an Annuity…

A: Net present value is the difference between Present Value of cash Inflows and Initial Investment.…

Q: You'll purchase a food truck today for $85000 and in 6 years will sell it for $18500. For an…

A: Capital Recovery is the total and equivalent annual cost of the assets we have in the business plus…

Q: You have an opportunity to purchase a piece of vacant land for $30,000 cash. If you plan to hold it…

A: Future value refers to the value of the amount to be received in lump sum in the future or in…

Q: Use the graph below to answer the following questions.   What is the approximate final value of…

A: Future value = Present value * ( 1 + Interest rate )time

Q: A new computer system will require an initial outlay of $14,150, but it will increase the firm's…

A: As related to 3rd question you have asked, the Discussion given in the below steps is based on the…

Q: You bought an asset for $10,000 and sold it for $20,000 after 10 years. What was the annual rate of…

A: Using excel RATE function

Q: uppose you save $4,000 per year at the end of each year for 30 years and earn 5% interest per year.…

A: Annual saving = $ 4000 Period= 30  Years Annual interest rate = 5%   As per formula         Value…

Q: Let's say you have a project which will cost $25mm to build or buy.  It will produce after-tax cash…

A: It can be solved by IRR function in excel. =IRR(values,[guess]) Values = Cash flows Guess = number…

Q: Calculating present and future values Use future or present value techniques to solve the following…

A: As per Bartleby answering policy answered only the first question. Kindly post the other questions…

Q: The company you work for is considering a new product line that is projected to have the net cash…

A: 1 given, inflation adjusted rate =20% year cashflow discounting factor @ 20% pw 0 -10,000 1…

Q: i) To what sum will the investment grow at the end of 5 years? i) How much interest will be earned…

A: Given information is: A local University is planning to invest $500,000 every 3 months in an…

Q: Considering an interest rate of 8%, that the cost of the equipment is $300,000 and you will replace…

A: Where the actual cost of equipment is dividing over the life of equipment is called annual cost.…

Q: What is the present value if the money become Php158, 900 after 5 years of investment using 11.2%…

A: The present value is the present worth of the amount that will be paid or received in the future.

Q: Your company needs $500,000 in two years' time for renovations and can earn 9% on investments. a)…

A: Discounting is a technique through which PV of future amount is computed by using discounting…

Q: If you insulate your office for $12,000, you will save $1,200 a year in heating expenses. These…

A: Net present value is the excess of the present value of cash inflows over the present value of cash…

Q: Assume that you are valuing an infinitely lived asset that pays $350 at the end of each year. What…

A: In the given question we need to compute the present value of perpetuity because infinitely lived…

Q: The average price of a new home is $520,000.If new home prices are increasing at a rate of 10%per…

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

Q: If you insulate your office for $19,000, you will save $1,900 a year in heating expenses. These…

A: a.Initial Investment = $19,000Saving in heating expense = $1,900 Calculation of NPV of the…

Q: If I invest £100 and get back £300, what is the percentage return over. a. 5years? b. 10years?…

A: The return for the period will depend upon the beginning investment, ending value, and the number of…

Q: I purchased a house and intend to hold the property indefinitely. I plan to rent the house to…

A: Following are the given details: First year's rent= $15000 Initial Growth Rate = 10% Stable Growth…

Q: If you insulate your office for $18,000, you will save $1,800 a year in heating expenses. These…

A: Formula: NPV = Present values of cash inflows - Present values of cash outflows. Deduction of…

Q: Suppose you wish to purchase a factory that will yield an annual return of $12,000 for 12 years,…

A: Here, Required Return on Investment is 8.25% Annual Return from Investment is $12,000 Time Period of…

Q: Hi, I'm looking for help with solving the answer for the following question. I've tried it myself…

A: Calculation of future value:There are 525,600 minutes in a year. So there are 10,512,000 minutes for…

Q: A process engineer plans on investing $5,000.00 now so that they may withdraw $500.00 a year for 12…

A: Cash flow diagram is a geographical representation shows the series of cash inflows and cash…

Q: Think about the cash flows associated with putting in the bank for five years, assuming you draw out…

A: Internal Rate of Return (IRR) of a project can be analysed as the return the investment earns. It…

Q: You have been thinking a lot about how the value of money changes over time. More specifically, you…

A: Present value = $1000,000 Rate = 3% Time = 30 years   Future value can be calculated using the…

Q: You are saving money for 10 years before you build a house. You have two investment options…

A: ANSWER ÷ we will choose plan A

Q: If you purchase a parcel of land today for $25,000, and you expect it to appreciate 10 percent per…

A: In the given question we need to compute the worth of land after 10 years i.e. future value of land…

Q: Suppose that a certain car has the following average operating and ownership costs. Average Costs…

A: IRA or Individual Retirement Account is facility offered by banks and financial institution which…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.