A certain manufacturing plant is being sold and was submitted for bidding. Two bids were submitted by interested buyers. The first bid offered to pay P 200000 each year for 5 years, each payment being made at the beginneing of each year. The second bid offered to pay P 120000 the first year, P 180000 the 2nd year and P 270000 each year for the next 3 years, all payments being made at the beginning of each year. If money is worth 12% compounded annually, which bid should the owner of the plan accept?

4. ALDA Investments makes a sale of equipment for a value of L 250,000.00 where the cancellation is negotiated through 3 payments, which are paid 1, 2 and 3 months after the purchase, if a rate of 18% per year capitalizable per month is negotiated What is the value of the payments if: a)Each one is 15% larger than the previous one. b)The last two are equal to each other and the first is equal to the sum of the two.

Blackstone Company purchased a new software system costing $35,000. To finance the purchase, Blackstone signed a contract agreeing to pay the cost over the next 8 years, with a payment due every six months; the first payment will be made six months from the date of purchase. Blackstone's usual interest rate is 10%. What is the amount of the payment required (rounded to the nearest dollar)? 's usual 096, What is the amount of the Select one: O a. 16,030 O b. 6,560 O c. 3,229 d. 2,575 e. None of the above

4. The Atlas Machinery Corporation sells its equipment to contractors on either of the following arrangements: a) cash basis: payments of marked price less 10%; b) installment basis: down payment of 20% of the marked price and the balance payable in equal annual installments for the next 4 years. If you are the engineer buying a 7S Concrete Mixer which is marked at P250,000 and if money is worth 5% compounded annually, which of the following arrangements will you consider better from your standpoint? A) Pay P225,000 cash, or b) pay a down payment of P50,000 and pay the balance on equal installments of P50,000 annually for the next 4 years?

Supposed amarriedcouple wishesto acquire aluxurious condominium in Tagaytay.Thiscan be acquired by a downpayment of P700,000and a yearly payment of P150,000 at the end of each year for a period of 10 years, starting at the end of 5 years from the date of purchase. If money is worth 15% compounded annually, what is the cash price of the property?

A firm, whose cost of capital is 8 percent, may acquire equipment for $146,825 and rent it to someone for a period of five years. Note: Although payment of rent is typically considered to be an annuity due, treat it as an ordinary annuity when completing this problem in a spreadsheet or when using present value factors. If the firm charges $38,730 annually to rent the equipment, what are the net present value and the internal rate of return on the investment? Use Appendix D to answer the questions. Use a minus sign to enter negative values, if any. Round your answers for the net present value to the nearest dollar and for the internal rate of return to the nearest whole number. NPV: $   IRR:  % Should the firm acquire the equipment? The firm  acquire the equipment as the net present value is  , and the internal rate of return  the firm's cost of capital. If the equipment has no estimated residual value, what must be the minimum annual rental charge for the firm to earn the required 8…

AAA Company is considering the purchase of a new equipment, paying PHP17,000 every year for 7 years, each payment being made in the beginning of each year. The seller figured interest at thirteen percent. What was the cash price of the equipment?

Michael Security has learned that a rival has offered to supply a parking garage with security for ten years for $45,000 up front and a further $15,000 per year. Michael Security offers to provide security for eight years for an upfront cost of $60,000 and a separate yearly payment. What should the yearly payment be so that Michael's offer matches the equivalent annual annuity of their rival's offer? (Assume a cost of capital of 5%.)