Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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7,8,9

6. You invest P 5 000 today at an interest rate of 10% for four years,
how much would
be the future value of the investment?
а. Р3415
b. Р7 000
с. Р6 500
d. P 7 320
7. You are an incoming college freshman taking-up a four-year course.
Suppose that
you want to purchase a car immediately after graduating which will
cost you P 750
000. How much should you invest at the end of every year in an
investment fund that
earns 9% annually to have enough to buy the car upon graduation?
а. Р 164 ООО
b. P 531 300
c. P 607 445
d. P 132 828
8. If you invest a lump-sum amount of P 25 000 at an interest rate of
12%, compounded
monthly, how much would be your investment after 3 years?
а. Р 34 ООО
b. P 35 123
c. P 39 338 d. none of the above
9. An equipment with a cost of P 100 000 is expected to generate
returns of P 90
000; P 60 O00 and P 50 000 for the first, second and third year,
respectively. Using a
discount rate of 12%, what is th
e NPV of the project?
a. P 60 121
b. P 79 341
c. P 83 431
d. P 63 778
10. What is the present value of a 6% investment that would pay P 30
000 annually
perpetually?
а. Р 500 000
b. Р 450 000
с. Р ЗОО ОО0
d. none of the above
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Transcribed Image Text:6. You invest P 5 000 today at an interest rate of 10% for four years, how much would be the future value of the investment? а. Р3415 b. Р7 000 с. Р6 500 d. P 7 320 7. You are an incoming college freshman taking-up a four-year course. Suppose that you want to purchase a car immediately after graduating which will cost you P 750 000. How much should you invest at the end of every year in an investment fund that earns 9% annually to have enough to buy the car upon graduation? а. Р 164 ООО b. P 531 300 c. P 607 445 d. P 132 828 8. If you invest a lump-sum amount of P 25 000 at an interest rate of 12%, compounded monthly, how much would be your investment after 3 years? а. Р 34 ООО b. P 35 123 c. P 39 338 d. none of the above 9. An equipment with a cost of P 100 000 is expected to generate returns of P 90 000; P 60 O00 and P 50 000 for the first, second and third year, respectively. Using a discount rate of 12%, what is th e NPV of the project? a. P 60 121 b. P 79 341 c. P 83 431 d. P 63 778 10. What is the present value of a 6% investment that would pay P 30 000 annually perpetually? а. Р 500 000 b. Р 450 000 с. Р ЗОО ОО0 d. none of the above
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