g) Find the present value of Ugx 120,000 payable in 5 years' time, assuming that an investment rate of 10 per cent , compounded annually, is available;

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 4BE: Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of...
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g) Find the present value of Ugx 120,000 payable in 5
years' time, assuming that an investment rate of 10 per
cent , compounded annually, is available;
h) A piece of equipment purchased at ugx. 750000
depreciates at a constant annual rate of 10% for the first
2 years, then, at a constant annual rate of 4% for 4 years
and it depreciates at a constant annual rate of 2%
thereafter. Compute the price of the machine after 10
years.
Transcribed Image Text:g) Find the present value of Ugx 120,000 payable in 5 years' time, assuming that an investment rate of 10 per cent , compounded annually, is available; h) A piece of equipment purchased at ugx. 750000 depreciates at a constant annual rate of 10% for the first 2 years, then, at a constant annual rate of 4% for 4 years and it depreciates at a constant annual rate of 2% thereafter. Compute the price of the machine after 10 years.
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