We sometimes need to find 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 are growing at a rate of 20 percent per year, how long will it take sales to double?
Q: 2. ABC Corporation plans to set aside $50,000 per year beginning 1 year from now for replacing…
A: Annual amount (P) = $50,000 Interest rate (r) = 10% Inflation rate (i) = 4% Period (t) = 6 Years
Q: 1. A company will have to spend $300000 on new plant in two years from now. Currently investment…
A: Present Value = $300,000 Time Period = 2 Years Interest Rate = 10%
Q: If a company's sales are growing at a rate of 20% annually, how long will it takes sales to double?
A: Future Value = Present Value * (1+r)^n let PV =1, than FV be 2
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A: Cost Analysis is based on Time value of money. This means a dollar today is worth more than a dollar…
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A: Bonus % = 1.25% Sales in year 1 = 350,320 Sales in year 2 = 362,320 Annual Increase in sales/bonus =…
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A: Internal rate of return(IRR) is one of the techniques of capital budgeting that take into…
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A: Value of investments after 10 years=$50,000Rate of return(r)=8%Time(n)=10 years
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A: Contribution Margin: It is defined as the difference between the sales and the variable cost.…
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A: If present value of future value is more than initial investment than investment is accepted.
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A: The value of company can be found as the present value of cash flow taken on the required rate of…
Q: Companies such as GE that have huge amounts of cash flow every day base their financial calculations…
A: Effective annual rate = ert - 1 Where, Effective annual rate = 25% e = exponential function r =…
Q: Annual revenues in our company are $1.5 million this year. If they are expected to grow at a…
A: Future Value = Present Value * (1+rate)^years
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A: Money demand function is as…
Q: How much money can a company spend now instead of spending $10,000 in year 3, $20,000 in year 4, and…
A: 3 year future value = $10,000 4 year future value = $20,000 5 year future value = $30,000 Interest…
Q: if a company's sales are growing at a rate of 10% annually, how long will i take sales to double
A: The above information indicates that sales of the company are growing and the approximate year it…
Q: If sales increase from R80 000 per year to R120 000 per year, and if the operating leverage is 5,…
A: Net Income is defined as the total amount of the funds, which is earned by the business in the…
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A: The capital budgeting is a technique that is used to evaluate the profitability of the project and…
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A: Given: Investment =$15000Annual return =$5000Inflation rate =30%
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A: In this we have to calculate the present value of all cash flow.
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A: option B: If a firm has a large % of accounts over 30 days old it is a sign that the firms…
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A: The given problem can be solved using NPER function in excel. NPER function computes no. of periods…
Q: A retail coffee company is planning to open new coffee 95 outlets that are expected to generate…
A: Solution:- Net Present Value (NPV) means the net value in today’s terms after adjusting initial…
Q: HS Shipping wants to expand as soon as it can save $112 million. Towards that goal, the firm started…
A: current savings of 3 years = $38.2 millions target of amount need to save = $112 - $38.2 = $73.8…
Q: An investment project is expected to yield $10,000 in annual revenues, will incur $2,000 in fixed…
A: Cost of goods sold = Sales x 60% = $10000 x 60% = $6,000
Q: Quick Grow is in an expanding market , and its sales are increasing by 25% per year. Would the net…
A: The sales of the company is increasing at a high growth rate of 25%, this means the company will…
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A: Given Information, Initial Cost =100,000 Cash Inflow = 30,000 Annually Time Period =5 years…
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A: Expected level of sales can be calculated as the sum of product of probability of respective…
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A: Data given: annual cash flow is projected =$74 × 6,000 = $444,000. Discount rate = 18 %, Initial…
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A: The rate of return on an investment is the ratio of profits earned on an investment made by the…
Q: We sometimes need to find how long it will take a sum of money (or anything else) to grow to some…
A: Given: Annual sales growth rate =20% Now, let present sales value = 100 Future sales value = Twice…
Q: A company forecasts free cash flow in one year (i.e. FCF1) to be -$10 million and free cash flow in…
A: cash flow in 1 year=$10 million cash flow in 2 years=$20 million rate=4% W.A.C.C=14% Current value=?
Q: Time Value of Money What is the rate of return on a security that costs $1,000 and returns $2,000…
A: Since you have asked multiple questions, we will solve the first question for you. Please ask…
Q: assume that $1 one year from now is worth $0.90 today, and $1 two years from now is worth $0.75…
A: Present value is the concept that states an amount of money today is worth more than that same…
Q: How do I work this problem in excel? What will $82,000 grow to be in 11 years if it is invested…
A: Future value formula will be used. where, Rate = 0.67% Nper = 132 periods PV = $82,000
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A: To compute the intrinsic value per share, total value of firm is determined by determining the total…
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A: Equivalent annual value = r * NPV / 1 - (1+r)^(-n) where r = interest rate NPV = net present value…
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A: The present value is arrived at by discounting the future cash flow using the interest rate. This is…
Q: . We sometimes need to find out how long it will take a sum of money (or anything else) to grow to…
A: Future value can be determined by present value and interest rate and period.we can determine period…
Q: If a company's sales are growing at a rate of 20% annually, how long will it take sales to double?
A: Present Value refers to the value of cash flows today which is to be received at some future time…
Q: A firm is considering a new inventory system that will cost $120,000. The system is expected to…
A: Capital Budgeting Techniques helps to determine which investment alternative should be undertaken.…
Q: At what rate would $1,700 have to be invested to grow to $20,692.71 in 29 years?
A: Details given are : Present value = $1700 Future value = $20692.71 Time period = 29 years We require…
Q: Please use excel and explain how you solved it step by step thank you How much income should an…
A: Here we will first of all have to compute the future value of the investment and then determine the…
Q: You are considering an investment product that is expected to generate an annual cash flow of $2,000…
A: Annual cashflow (A) = $2000 starting after 3 years Cost of investment in year 0 (C0) = $10000 C1 =…
Q: 3. Suppose your company expects to increase unit sales of widgets by 15% per year for the next 5…
A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…
c. We sometimes need to find 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 are growing at a rate of 20 percent per year, how long will it take sales to double? |
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- How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one year from now and the rate is 8%?We sometimes need to find 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 are growing at a rate of 20% per year, how long will it take sales to double?3. 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 at a rate of 10% per year, how long will it take sales to double?
- If a company's sales are growing at a rate of 20% annually, how long will it takes sales to double?QUESTION ONE 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 are growing at a rate of 20% per year, how long will it take sales to double? If you want an investment to double in 3 years, what interest rate must it earn? What is the difference between an ordinary annuity and an annuity due?In this exercise, we develop a model for the growth rate G, in thousands of dollars per year, in sales of a product as a function of the sales level s, in thousands of dollars.† The model assumes that there is a limit to the total amount of sales that can be attained. In this situation, we use the term unattained sales for the difference between this limit and the current sales level. For example, if we expect sales to grow to 4 thousand dollars in the long run, then 4 − s gives the unattained sales. The model states that the growth rate G is proportional to the product of the sales level s and the unattained sales. Assume that the constant of proportionality is 0.8 and that the sales grow to 2 thousand dollars in the long run. (a) Find a formula for unattained sales.(b) Write an equation that shows the proportionality relation for G.G =
- Quick Grow is in an expanding market , and its sales are increasing by 25% per year. Would the net working capital to be increasing or decreasing, explain why?Suppose you have an investment offer that guarantees an average investment gain of $1,000 per year. (a) What is the average rate of change (in dollars per year) of this investment? $? per year (b) If the value of the investment today is $10,000, what will be the value (in dollars) of the investment in 2 years? $?Companies such as GE that have huge amounts of cash flow every day base their financial calculations on continuous compounding. If the company wants to make an effective 25% per year, compounded continuously, what nominal daily rate of return has to be realized? Assume 365 days per year.
- HS Shipping wants to expand as soon as it can save $112 million. Towards that goal, the firm started saving three years ago and currently has $38.2 million saved. Starting today, the firm will add $15,000 a month to this savings account. The rate of return is 7.1 percent, compounded monthly. How long will it be from now before the company can expand?Suppose Naboo Manufacturing's sales increase 20% over the next year. Assuming that all asset accounts change proportionately to sales, what is the external financing needed?How much money can a company spend now instead of spending $10,000 in year 3, $20,000 in year 4, and $30,000 in year 5, if the interest rates are estimated to be 10% per year in year 1, 12% per year in years 2 and 3, and 15% per year in years 4 and 5?