If the annual deposit into depletion reserve is $ 1000 and annual interest on capital investment is $ 125, then find annual net income----- Select one: a. $ 1125 b. $ 875 c. $ 1025 d. $ 975
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- 1) Find the PW, AW and FW of the following cashflow if the interest rate compound semiannually. P-7 i-10% --14%- Year $100 $100 S100 $100 $100 S160 S160 SIGD1) Find the PW, AW and FW of the following cashflow if the interest rate compound semiannually. P-7 i-10% --14%- Year $100 $100 S100 $100 $100 S160 $160 SIG0Consider the following timeline: Date Cash flow $100 OA. $627 OB. $482 OC. $600 OD. $964 2 $200 3 $300 If the current market rate of interest is 10%, then the present value (PV) of this timeline as of year 0 is closest to ICCESS
- Consider the following timeline: Date 0 i + $500 2 OA. $666. B. $605. C. $500. OD. $650. 3 Cash flow If the current market rate of interest is 10%, then the future value of the cash flows on this timeline is closest to:True or false: The formula An = 1000 + 30n can be used to calculate the final amount in an investment account that pays 0.3% simple interest pa on a capital sum of $1000.If the annual interest on capital investment is $2000 and annual deposit into depletion reserve is $1000 then what is annual net income Select one: a. 5000 b. 6000 C. 4000 d. 3000
- Use the compound interest formula A = P(1 + i)n to find the indicated values A = $6,000; i = 0.03; n = 24; P =?Given the following information ZO12345 N 0 Net cash flow 500 0 500 0 500 0 a. Determine the equal cash flow A from 0 to 5 at an interest of 10% b. Determine the equal cash flow (from 1 to 5) when considering at interest of 10%B. At time 0, K is deposited into Fund X, which accumulates at a force of interest of t + 3 t² + 6t+9 8₁ At time m, 2K is deposited into Fund Y, which accumulates at an interest of 10.25%, convertible quarterly. At time n, where n > m, the accumulated value of each fund is 3K. Calculate m.
- You deposit $8000 in year 1, $7500 in year 2, and amounts decreasing by $500 per year through year 10. At an interest rate of 10% per year, determine the annual worth equivalent through year 1 to 10. Select one: O a. 10282.48 O b. 6137.27 O c. 4540.89 O d. 5717.52 O e. 9862.73Cullumber Inc. owns and operates a number of hardware stores in the Atlantic region. Recently, the company decided to open another store in a rapidly growing area of Nova Scotia. The company is trying to decide whether to purchase or lease the building and related facilities. Currently, the cost of funds for Cullumber is 10%. Purchase: The company can purchase the site, construct the building, and purchase all store fixtures. The cost would be $1,840,000. An immediate down payment of $405,000 is required, and the remaining $1,435,000 would be paid off over five years with payments of $347,000 per year (including interest payments made at the end of the year). The property is expected to have a useful life of 12 years, and then it will be sold for $590,000. As the owner of the property, the company will pay $51,000 in occupancy expenses at the end of each year. Lease: First National Bank has agreed to purchase the site, construct the building, and install the appropriate fixtures for…Consider the following timeline: Date Cash flow 0 ? 1 OA. $472 B. $944 C. $600 D. $614 $100 2 $200 3 $300 If the current market rate of interest is 11%, then the present value (PV) of this timeline as of year 0 is closest to: