What is Annual-payments option?

Q: relationship between Future Value Factor and Future Value of an Annuity Factor

A: Future value factor is the equivalent value at the some future date of a cash flow at time 0. For…

Q: payback period?

A: Payback period is when the initial cash outflow is recovered via cash inflows

Q: Write the various applications that call for annual-worth analysis techniques?

A: Annual worth analysis is the analysis which is done by the managers before taking capital budgeting…

Q: hOW DO YOU CALCULATE MARR in real terms? (Adjusted for inflation)

A: Minimum Acceptable Rate of Return (MARR) is made to ascertain the economic attractiveness of the…

Q: pay back period?

A: Pay back period = Number of years fully covered + (Remaining part of investment to be covered/Next…

Q: Nhat is the exact rate of return?

A: The net gain or net loss of an investment over a predetermined time period is referred to as a rate…

Q: What is the rela1ionship between Annual  Percentage Rate and the interest period?

A: Answer: Annual percentage rate represents the interest rate which also takes additional payments…

Q: The effective interest rate over this period equals ...

A: Effective Interest Rate: It refers to the annual rate of interest which takes into account the…

Q: What is the difference between spot rates andforward rates? When is the forward rate at a premium to…

A: Spot rates are the rates that prevail in the cash market or the rates that are applicable today.…

Q: What is the net present value of an annuity?

A: Net present value is defined as the temporal variation in the present value of cash inflows and…

Q: Which factor determines how much will be saved at different interest rates?

A: The time preference of the consumer for consumption helps in determining the amount that will be…

Q: Explain present value of annuity, PVA

A: An annuity is the series of payments which is received or paid for a fixed period of time. The equal…

Q: What is annual worth method, future worth method, and present worth method in comparing alternative,…

A: There are various alternatives for a project or investments that can be undertaken or chosen by the…

Q: What security provides a good estimate of the short-term nominalrisk-free rate?

A: T-bills are the treasury bills issued by the government. These bills are risk-free and the rate of…

Q: What is going interest rate?

A: An interest rate is the rate which is applicable on loan and the borrower has to pay the interest…

Q: What is the Annual Equivalence Analysis?

A: The criteria for annual equivalent analysis provides a basis for computing the value of an…

Q: Will some of the parties receive a preferred return? Will the preferred return be paid from annual…

A: The preferred return is a distribution of profit earned by the organization to their elite class of…

Q: What does the annuity factor indicate?

A: Annuity factor It indicates the discounted factor’s sum for all the n maturities when all n…

Q: What is growing annuity?

A: Introduction: Annuities are insurance contracts that agrees to pay you steady income either…

Q: how much borrowing cost should be capitalized by ISKOLAR in 2021?

A: Borrowing costs are interest and other costs that an entity incurs in connection with the borrowing…

Q: How can we determine the Net Present-Worth Amounts at Varying Interest Rates?

A: Answer: Net present worth is an estimation method applied to various time intervals when cash flows…

Q: What is the equivalent annual annuity of the most profitable project?

A: The Equivalent Annual Annuity  method is one of the capital budgeting technique which is used for…

Q: What do you think about the interest rate i for

A: A recession refers to the time period which is affected by a temporary economic decline during which…

Q: How can we calculate the net present worth of each payment?

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: The value of the interest rate depends on the ------ of the time period. Select one: a. length b.…

A: The interest rate value is influenced by factors such as inflation, creditworthiness, loan amount,…

Q: What is the relation between the present value of an investment and time and interest rate?

A: The concept of present value of an investment and time and interest rate is an important concept of…

Q: What is future value interest factor for an annuity?

A: The concept that helps to evaluate the future or present value of the cash flow is term as the time…

Q: What is the factor form equation to get EUAB/Annuity (A) ?

A: Interest Rate = 5% N = 7 Cash Flows: Year Cash Flow 0   1   2   3   4 1000.00 5…

Q: How does the present value of a future payment change as the time to receipt islengthened? As the…

A: Present Value of a future payment is calculated  based on the length of time and the interest rate…

Q: Define the term the annuity factor?

A: An annuity factor is financial value that, when multiplied by a periodic amount, then it shows the…

Q: Find the future value for each of the following scenarios, where m is the periodic deposit and r is…

A: It is abbreviated as “Future Value, is the expected amount during the closure at a point in time in…

Q: What can be understood from annual percentage rate (APR)?

A: Annual percentage rate (APR): The yearly rate charged for borrowing or picked up from speculation is…

Q: When will the prime rate go up and what factors drive it?

A: The prime rate is the best interest rate you can get, and it's influenced by the economy.   In order…

Q: What will an investment or a series of investment be worth after a period of time?

A: The time value of money states that an amount of money is worth more now than it will be in the…

Q: which of the following is necessary to solve a discount problem?   a.future amount   b.interest…

A: In a discounting problem, the present value of future cash flow is calculated. In order to…

Q: What is the formula for the following: Payback period. Net Present Value Internal Rate of return…

A: Accounting:   Accounting is the art of recording, classifying and summarizing in a significant…

Q: What is nominal annual interest rate?

A: Interest rate is a crucial part of any financial instrument. There are two types of interest rates:…

Q: What is the future worth of a uniform series payment?

A: The future worth is the value of an asset at a predefined future date which increases at a specific…

Q: What is future value interest factor?

A: Introduction: The future value is the value of single present amount accumulated at a rate of…

Q: What is future value of annuity, FVA?

A: The concept that helps to evaluate the future or present value of the cash flow is term as the time…

Q: From the table below,  answer comprehensively the following subparts: a. Which plan do you prefer?…

A: Here we can use the concepts and formulas of compounding and time value of money.

Q: What is the full installment price?

A: Time value of money means the money that we receive today will be worth more than the money that…

Q: What is the difference between the regularand discounted payback periods?

A: The Regular Payback period is one of the capital budgeting techniques. It refers to the time period…

Q: What is premium on forward rate?

A: A forward rate is referred as an interest rate which is applicable on financial transactions which…