In order to build a new warehouse facility, the regional distributor for Valco Multi-position Valves borrowed $1.6 million at 10% per year interest. If the company repaid the loan in a lump sum amount after two years, what was (a) the amount of the payment, and (b) the amount of interest?
Q: Camber Corporation has to decide if they can finance purchasing 10 new machines for all their…
A: 1.The actual cost of each machine is $1,730,000 and total cost to be required to purchase 10…
Q: Acme has branched out to rentals of office furniture to start-up companies. Consider a $3,600 desk.…
A: Break even rate is calculated by dividing the net present value divided by the future value factor.…
Q: Rubbermaid Plastic Corp. invested ₱10,000,000 in manufacturing equipment for producing small…
A: Invested money is ₱10,000,000. Annual interest rate is 5%. Maturity is 7 years. Compounding…
Q: With a $100,000 investment in a new injection moulding machine, A-Design Inc., a company specialized…
A: The payback period is the span of time necessary to repay the cost of an investment. Simply…
Q: Benford Inc. is planning to open a new sporting goods store in a suburban mall. Benford will lease…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase…
A: The amortization schedule gives information to the lender and borrower about the loan payments due…
Q: Wrangler Western has some of its jeans stone-washed under a contract with an independent contractor,…
A: Present Value of annuity = Annuity1+interest raten Present worth in Year 0 = Sum of present…
Q: Acme has branched out to rentals of office furniture to start-up companies. Consider a $4,600 desk.…
A: Calculation of break-even lease rate:Answer:The break-even rate is $1505.12
Q: A contractor is constructing a project for which he will be paid in one lump sum upon satisfactory…
A: Loan for the first 6 months=$700,000 , interest rate = 1.5% per month for the first 10 month Loan…
Q: Six years ago, Neighborhood Hardware paid a contractor $63,000 to expand the store. At that time,…
A: Net present value is the difference between the present value of cash inflows and present value of…
Q: H&H Machine Systems Inc. needs to acquire a new lift truck for transporting final products to…
A: a. The calculation is: The formulae image is:
Q: Spectra Scientific of Santa Clara, CA, manufactures Q-switched solid state industrial lasers for LED…
A: SOLUTION:- Rate of return is the rate of interest paid on unpaid balance of money which is borrowed…
Q: a. Compute the net investment required for Benford b. Compute the annual net cash flows for the…
A: If the present value of cash inflows is more than the present value of outflows then the project is…
Q: A company that manufactures a revolutionary aeration system combining coarse and fine bubble…
A: Equivalent annual cost is yearly cost of operating, maintaining and owing asset over its full life.
Q: Sadik Industries must install $1 million of new machinery in its Texas plant. It can obtain a 6-year…
A: Depreciation is the reduction in the value of an equipment with the time of its usage. It is used to…
Q: Grouper Excavating Inc. is purchasing a bulldozer. The equipment has a price of $90,500. The…
A: Total interest=Total Payment-Amount Borrowed Annual Payment=Amount borrowedPresent value annuity…
Q: what is the equivalent uniform annual expense over 30 years if the annual interest is 6%?
A: Equivalent Annual Cost = NPV × r 1 − (1 + r)-n
Q: Fortune Teller Inc., purchased a tarot card-making machine for $1 million. The CCA rate on this…
A: CCA rate is the rate which is acceptable to reduce the value of an asset beyond that rate it is not…
Q: The investors of Smith Autos have put up $500,000 to construct a building and purchase all equipment…
A: Viability Analysis helps in comparing the costs and benefits of any business. It helps makes…
Q: Wrangler Western has some of its jeans stone-washed under a contract with an independent contractor,…
A: The present worth of the machine is operating cost is the present value of all future cash outflow
Q: A software company that installs systems for inventory control using RFID technology spent $600,000…
A: Inventory is the investment in material which is done by the firm. Firm maintains the level of…
Q: ABC company has just purchased a life truck that has a useful life of 5 years. The engineer…
A: Present value is the current value of future cash flows.
Q: Robinson Co. is interested in purchasing a new delivery vehicle so it can become a subcontractor…
A: Investment Appraisal: It is a process a business attempts to assess likely significant activities…
Q: Wolfson Corporation has decided to purchase a new machine that costs $5.1 million. The machine will…
A: Cost of machine=$5,100,000 Useful life=4 years Depreciation p.a. =Cost of asset-Salvage valueUseful…
Q: A company is allocating $10 million to develop a new product. This money will be spent continuously…
A: Interest is an additional amount which is received on deposited amount. It increases the value of…
Q: Anderson Manufacturing Co., a small fabricatorof plastics, needs to purchase an extrusion…
A: First annual payment is determined using the following formula: Principal=Annual Payment of year…
Q: A small analytical laboratory borrowed $26,000 (the original amount or the principal) at an interest…
A: Compound interest is referred as the interest which is calculated on principal amount which involves…
Q: An office supply company has purchased a light duty delivery truck for $15,000. It is anticipated…
A: Net present value or annual worth is the present value of all the cash flows. It is used in capital…
Q: Franchise. Seattle Corporation pays a franchise fee of $20 million to enable it to sell Good's…
A: a . Annual Amortization = Franchise cost / useful life…
Q: Wolfson Corporation has decided to purchase a new machine that costs $3 million. The machine will be…
A: Net advantage of leasing(NAL) Net advantage of leasing is the present value of leasing the asset…
Q: Find the year-by-year after-tax net cash flow for the project at a 40% marginal tax rate based on…
A:
Q: Yejen Industries Ltd. invested $10,000,000 in manufacturing equipment for producing small…
A: Investment = 10,000,000 Interest Rate = 15% Time Period = 7 years
Q: Emerson Processing borrowed $900,000 for in- stalling energy-efficient lighting and safety equipment…
A: Simple interest is based on the principal amount of a loan or the initial deposit in a savings…
Q: A construction company borrowed money at 10% per year interest to purchase new heavy equipment nee
A: All sorts of future cash flows in respect of adding interest on present value are known as future…
Q: The repair costs for some handheld equipment at the office of NAIA is estimated to be P 120,000 in…
A: Office needs to deposit the amount that is equal to the present value of the repair costs for the…
Q: Camber Corporation has to decide if they can finance purchasing 10 new machines for all their…
A: a)Calculation of annual payments:Answer:The annual payment is $3,417,453.45.The actual cost of each…
Q: A supermarket can purchase an automated checkout machine for $100,000 (to be paid in year 0) that…
A: We will determine the present value of costs of both alternatives. The alternative with lower…
Q: Max's Kennels spent $220,000 to refurbish its current facility. The firm borrowed 60 percent of the…
A: We use PMT function to calculate monthly payments
Q: Junker Rental Car has a contract with a garage for major repair service for $450 per car, every 6…
A: Amortization is the mechanism of bringing down the asset value periodically by the owner of the…
Q: Benford Inc. is planning to open a new sporting goods store in a suburban mall. Benford will lease…
A: Equipment and fixtures $ 3,50,000.00 Net working capital $ 3,00,000.00 First-year sales $…
Q: A group of private investors borrowed $30 million to build 300 new luxury apartments near a large…
A: Borrowed amount = $30000000 Annual interest = 6% Loan is to be repaid in equal annual…
Q: Camber Corporation has to decide if they can finance purchasing 10 new machines for all their…
A: 1.The original cost per machine is $1,730,000 and the overall cost needed to buy 10 machines is as…
Q: paying PHP17,000 every year for 7 years, each payment being made in the beginning of each year. The…
A: Since the payments are made at the start of the year so to find the cash price that is the present…
Q: Dreamville Records fashioned an extension and renovation to its recording studio at Fayetteville,…
A: Using the NPER function in excel
In order to build a new warehouse facility, the regional distributor for Valco Multi-position Valves borrowed $1.6 million at 10% per year interest. If the company repaid the loan in a lump sum amount after two years, what was (a) the amount of the payment, and (b) the amount of interest?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Required information. In order to build a new warehouse facility, the regional distributor for Amazon borrowed $2 million at 13% per year interest. If the company repaid the loan in a lump sum amount after 2 years, what was the amount of the payment? (You must provide an answer before moving to the next part.) The amount of the payment was $ 6,590,796.72Emerson Processing borrowed $900,000 for in- stalling energy-efficient lighting and safety equipment in its La Grange manufacturing facility. The terms of the loan were such that the company could pay interest only at the end of each year for up to 5 years, after which the company would have to pay the entire amount due. If the interest rate on the loan was 12% per year and the company paid only the interest for 4 years, determine the following: (a) The amount of each of the four interest payments (b) The amount of the final payment at the end of year 5XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made monthly, and at an interest rate of 5% APR. a. What is the total amount of monthly payments? b. What will be the total amount of interest paid on this loan? c. How much of the first monthly payment will be interest and how much of the last monthly payment will be interest?
- The Odessa Supply Company is considering obtaining a loan from a sales finance company secured by inventories under a field warehousing arrangement. Odessa would be permitted to borrow up to $320,000 under such an arrangement at an annual interest rate of 10 percent. The additional cost of maintaining a field warehouse is $20,000 per year. Assume that there are 365 days per year. Determine the annual financing cost of a loan under this arrangement if Odessa borrows the following amounts: $320,000. Round your answer to two decimal places. % $240,000. Round your answer to two decimal places. %A start-up company that makes robotic hardware for CIM (computer integrated manufacturing) systems borrowed $1 million to expand its packaging and shipping facility. The contract required the company to repay the lender through an innovative mechanism called “faux dividends,” a series of uniform annual payments over a fixed period of time. If the company paid $290,000 per year for 5 years, what was the interest rate on the loan?LEW Company purchased a machine at a price of $100,000 by signing a note payable, which requires a single payment of $123,210 in two years. a. Assuming annual compounding of interest, what rate of interest is being paid on the loan? Use Excel function Rate to calculate the rate. b. What would be the purchase price of the machine had LEW negotiated a single payment of $120,000 in two years, using the same effective rate? Use excel only..
- (b) The company is considering purchasing a new delivery truck for $1,200,000. The intention is to obtain a 5-year loan from their bank, at an interest rate of 9% per annum. Annual payments are expected to be made on the loan. Required:i. Calculate Micron Industries’ annual payment on this loan. ii. Prepare the 5-year Amortization Schedule for this loan, clearly showing the interest and principal payment annually.LEW Company purchased a machine at a price of $100,000 by signing a note payable, which requires a single payment of $123,210 in 2 years. Assuming annual compounding of interest, what rate of interest is being paid on the loan?General Computers Inc. purchased a computer server for $70,000. It paid 35.00% of the value as a down payment and received a loan for the balance at 4.50% compounded semi-annually. It made payments of $2,850.75 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? payments Round up to the next payment b. Fill in the partial amortization schedule for the loan, rounding your answers to two Question 3 of 7 b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Number 0 1 2 Payment Interest Portion Principal Portion Principal Balance $45,500.00 11
- XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made monthly, and at an interest rate of 5% APR. a. How much of the total cost is CAPEX and how much of the total cost is OPEX? b. How much cash must the company have to make the down payment? c. What is the monthly payment?A trucking firm purchased two B-train trucks for $325 000. It paid 20% as a down paymentand obtained a bank loan for the rest. The loan has a nominal interest rate of 10.5% compoundedmonthly with a 10-year amortization period. The loan term is 10 years. What are the firm's monthlypayments to the bank?General Computers Inc. purchased a computer server for $60,500. It paid 45.00% of the value as a down payment and received a loan for the balance at 9.00% compounded semi-annually. It made payments of $2,100.12 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? Round up to the next payment