what rate of return did the company make on these deposits

Q: JENNY Company is considering borrowing P800,000 from the bank for less than a year as additional…

A: Simple interest is a quick and easy method of calculating interest charged on a loan. This interest…

Q: The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000.…

A: Cash payback period: This is the time taken by the returns from an investment to repay the…

Q: A company wishes to set aside money now to invest over the next 14 years. The company can earn 10%…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: EU Corporation plans to construct its own building at the end of 10 years for an estimated cost of…

A: The concept of the time value of money (TVM) states that money accessible now is valued more than a…

Q: To raise $5,500,000 to expand into new markets, a very successful laptop manufacturing company…

A: To find the periodic cost of debt, we will have to find 2 amounts, first for the semi-annual payment…

Q: The internal rate of return method is used by Testerman Construction Co. in analyzing a capital…

A: a. At internal rate of return, the present value of cash inflows is equal to the present value of…

Q: A company is considering purchasing new equipment. The purchase of the equipment is expected to…

A: The interest rate to be used for discounting the cash flows is 6%. The after tax savings of $12600…

Q: A corporation is considering the purchase of an interest in real estate syndication at a price of…

A: Calculation of expected IRR compounded monthly, total cash paid and profit: Answer: Monthly required…

Q: An A&E firm planning for a future expansion deposited $44,000 each year for 5 years into a sinking…

A: Given information: Annual payment of $44,000 Number of years is 5 years, Future value of annuity is…

Q: Use this information for Wyoming Corporation to answer the question that follow. The management of…

A: Capital budgeting is a quantitive process of analyzing investments in capital projects. It involves…

Q: Three investments cost $7,000 each and have the following cash flows. Rank them on the basis of…

A: Capital budgeting is the process by which a corporation examines potential large projects or…

Q: A Company expects to receive the following mixed stream of cash flow over next 5 years from its…

A: The rate of return is 5%.

Q: ELJ Corporation plans to construct its own building at the end of 10 years for an estimated cost of…

A: Given: Years =10 Cost = P15,000,000 Interest rate = 13% Future value = P24,000,000

Q: Marigold Corp. will invest $810000 today. The investment will earn 10% for 4 years, with no funds…

A: Generally, investment refers to buying or accumulation of capital goods such as tools, factories,…

Q: Sheridan Company will invest $830000 today. The investment will earn 8% for 7 years, with no funds…

A: The answer is as fallows

Q: Answer the following questions related to Dubois Inc. a.    Dubois Inc. has $600,000 to invest. The…

A: As you posted multiple questions we are answering only first question kindly repost the unanswered…

Q: assume that the bank decided to give a loan of $ 59 million to Nivea Corporation (recorded for the…

A: Introduction: The payback period is nothing but how long it takes to recoup the cost of an…

Q: 2/Gamma Corporation is considering an investment of $518,000 in a land development project. The…

A: Net Present value is a capital budgeting technique used to evaluate a project. Under this method,…

Q: Cleanborn Ltd has bought an asset with a life span of 4 years. At the end of the 4 years,…

A: A sinking fund method is an accounting method that helps to accumulate the desired future sum. In…

Q: Identify the symbols involved if a pharmaceutical company wants to have a liability fund worth $200…

A: Payment made regularly for each period is known as annuity. To calculate the present value of…

Q: Use this information for Wyoming Corporation to answer the questions that follow. ​The management…

A: Present value means when the future cash flow has been adjusted with required rate of return.…

Q: Sunland Company will invest $910000 today. The investment will earn 8% for 7 years, with no funds…

A: This problem can be solved using FV of $1 table factor. It can also be solved using Excel also.

Q: Assume that Linda Company is to make an investment of uneven cash payments for three years as…

A: Interest rate = 10% End of year 1 payment = P 200,000 End of year 2 payment = P 300,000 End of year…

Q: A company wants to save GH¢100000 over the next 5 years so that they can expand their plant…

A: GIVEN, FV = GH¢100000 N = 5 YEARS R=6%

Q: Calculate the Net Present Value (NPV) and the Profitability Index (PI) over the six years. Assume…

A: Net present value (NPV) is the difference of present value of all cash inflows and the cash outflow.…

Q: Smith Investors places $50,000 in an investment fund. One year after making the investment, Smith…

A: IRR(internal rate of return) is the rate of return an investment generates in its lifetime expressed…

Q: The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000.…

A: Average rate of return = Average profit / Initial investment where, Average profit = Total profit /…

Q: A company is interested in new investment opportunities which could generate more revenues in…

A: Investment = 4,000,000 Time Period = 10 years   Institution A Semi Annual Interest Interest Rate =…

Q: Assume that the bank decided to give a loan of $ 59 million to Nivea Corporation (recorded for…

A: Hey, since there are multiple subpart questions posted, we will answer the first three subpart…

Q: The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000.…

A: Average  rate of return  = Estimated  Average  annual income / Average  investment

Q: An A&E firm planning for a future expansion deposited $44,000 each year for 5 years into a sinking…

A: Given information: Annual payment of $44,000 Number of years is 5 years, Future value of annuity is…

Q: assume that the bank decided to give a loan of $ 59 million to Nivea Corporation (recorded for…

A: Net present value (NPV) is the difference between the present values of cash inflows and cash…

Q: The internal rate of return method is used by Queen Bros. Construction Co. in analyzing a capital…

A: The internal rate of return is the percentage at which the net present value of the company is zero.…

Q: From Part A above, assume that the bank decided to give a loan of $ 59 million to Nivea Corporation…

A: Therefore, the NPV is -$37.41 million and PI is 0.37 times.

Q: Abc plans to construct an adiitional building at the end of 10 years at an estimated cost of…

A: first calculate the payments for the first 5 years N = 10, FV = 5,000,000, rate = 13%, PV = 0 use…

Q: Problem 02.049 - Calculation of unknown interest rate An A&E firm planning for a future expansion…

A: The formula used is shown:

Q: From Part A above, assume that the bank decided to give a loan of $ 59 million to Zenith Corporation…

A: 1) Computation of NPV and PI as follows: Hence, the NPV is -$34.59 and PI is 0.41. Working note:

Q: Motel Corporation is analyzing a capital expenditure that will involve a cash outlay of $208,240.…

A: The internal rate of return refers to a metric used in capital budgeting for measuring…

Q: An oil well which could produce a net income of P15,083,207 per year for 25 years is being purchased…

A: Return on Investment: The net profit or return earned on the initial investment is known as the…

Q: Purple Cloud Inc. has $500,000 to invest. The company is trying to decide between two alternative…

A: The decision about the choice of alternative will be based on the calculation of present value of…

Q: XYZ plans to construct an additional building at the end of 10 years fo an estimated cost of…

A: Here we will use the concept of time value of money. As per the concept of time value of money it is…

Q: A bank invested $50 million in a two-year asset paying 10 percent interest per year and…

A: Banks take deposits from customers and pay them lower interest rate or take money from investors or…

Q: From Part A above, assume that the bank decided to give a loan of $ 59 million to Nivea Corporation…

A: Net present value (NPV) is the difference between the present values of cash inflows and cash…

Q: Rachel Foundation, Inc., a tax-exempt organization duly registered with the Securities and Exchange…

A: Net Present Value (NPV): It is the difference between the present values of cash inflows and cash…

Q: Cargojet Corp. is preparing for the replacement of one of its jets in three years by making payments…

A: The question is based on the concept of  sinking fund to accumulate the required amount at end . The…

Q: The internal rate of return method is used by Queen Bros. Construction Co. in analyzing a capital…

A: IRR Annual growth rate of growth that is estimated to be generated from an investment.

Q: Alfarsi Industries uses the net present value method to make investment decisions and requires a 15%…

A: Net present value means the difference between the present value of cash inflow and present value of…

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.