A company epects the cost of ts product parts to increase by 8℅ per year begnning 4 years from now theough to year 10 The cost in years 1-3 is AED 600 and the interest rate is 12% per year 1) Calculate the total present worth in year-0 2) Calculate the future worth in year-10 option a AED 21361.88 b AED 4032.74 C AED 3786.61 d AED 4400. 66 e AED 12524. 89 f AED 6878.06

Q: The alternatives are mutually exclusive and the MARR is 6% per year. Which alternauve selected? (ize

A: The semiannual effective interest rate can be defined as the compounded interest rate for six…

Q: What is the initial value of an investment that has a value of $6245.30 after 6 years at a 5.5%…

A: The initial value can be calculated using the Present Value formula.

Q: The spot price of an investment asset is $50. The asset pays sure income of $5 in 6 months and the…

A: Using the Formula (stock price less present value of dividend ) * (1+rate)^no. of period

Q: You are promised an 8 year streams of income from buying a new technology at the initial amount of…

A: Step 1 Given a certain rate of return, present value (PV) is the current value of a prospective…

Q: Revenue from a project is expected to be $7000 per year in real terms (i.e. an identical project…

A: Real Value (P) = $7,000Inflation rate (r) = 2.4% or 0.024Number of years (n) = 8

Q: company wants to make a single deposit now so it will have enough money to purchase a beckhoe…

A: Note- Requirement A) and Requirement B) being similar has been solved simultaneously. Present Worth…

Q: A newly established company is considering purchasing a lot in the province. The company needs 10M…

A: Here, To Find: Part a. Amount of periodic payment from each option =? Part b. Option that offers…

Q: Your company will generate $75,000 every 3-months for the next seven years from a new project.…

A: Given a certain rate of return, present value (PV) is the current worth of a future sum of money or…

Q: Compare the alternatives shown below on the basis of their present worth, using an interest rate of…

A: Capital budgeting is a financial tool that helps to evaluate a capital investment's profitability…

Q: Calculate the perpetual equivalent annual cost (years 1 to ∞) of $950,000 now and $775,000, 8 years…

A: In year 0,Cash flow= 950000 + 775000/(1 + 0.11)^8= 1286293.0346

Q: What will be the future value of $5 000 invested for six years at 8% per annum compounded annually?

A: Information Provided: Principal value = $5000 Interest rate = 8% compounded annually Years = 6

Q: Calculate the EUAC of a company If present worth is 5000$ for 6 years at interest rate of 11%.…

A: The answer for the multiple choice question and relevant working are presented hereunder : Present…

Q: What is the simple payback period (in years) tor an investment of $565,000 the net annuol income is…

A: Investment = 565,000 Annual Income = 55,000

Q: Using the information below and assuming a 30 year amortized 65% LTV at 7% rate what is the DSCR…

A: Let's break down the steps to calculate the DSCR ratio for 120 Jefferson in more detail,…

Q: Using the information below and assuming a 30 year amortized 65% LTV at 7% rate what is the DSCR…

A: The Loan to Value (LTV) ratio is the amount of the loan compared to the value of the property. In…

Q: Question 1 We just signed a lease contract in a 200,000 SF office building complex for $25/SF/year…

A: a. Current Value of Building as on lease= 200,000 SF Discounting Rate= 10% No. of years= 10 Years…

Q: Give the Given, solution and cash flow diagram Benchie owns a legal instrument, due three years…

A: The value of note refers to the discounting of the maturity value of the note at the compounding…

Q: What is the yield to the lender on a $300,000 loan at 5.50 percent interest, with monthly payments…

A: Loans and interest rates are divided into small monthly payments that carry the payment for interest…

Q: How much invested now at an interest rate of t10% compounded annually would be just sufficient to…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: 1. You are considering the purchase of an apartment building with the following information:…

A: Here: Details of Ques-1: Purchase Price is $12,500,000 Expected Year 1 NOI is $1,000,000 Expected…

Q: 1 You deposit P10 000 into a 9% account today . At the end of two years , you will deposit P30 000 .…

A: Future Value The future value is the amount that will be received at the end of a certain period.…

Q: pay Cashbox Ltd has the option of buying a new computer system or 5 payments of $85000 each to be…

A: Present value would be the equivalent value of money today considering the time and interest rate…

Q: Solve for the future worth in year 8 given that the interest rate is at 10% per year.

A: Future Value = Present Value ( 1 + r )n

Q: ed quarterly for a 11,000, 5 1/2% m=4 redeemable at 110% at the end of 11 years and quoted price

A: The given problem can be solved using RATE function in excel. RATE function computes yield to…

Q: Assuming that the force of interest per annum is as given above and that it will fall by 50% over 10…

A: To calculate the present value of a series of four annual payments, we need to discount each payment…

Q: If P100,000 is invested for 6 months at 1.5% per annum, what is the maturity value? O P100,750 O…

A: Present value: It is the current value of a future sum of money or cash flows given over a specified…

Q: A company is expected to result 700$ savings annually for the 7 years, if the rate of interest is…

A: Annual Benfit = $700 Interest Rate =10% Years = 7

Q: What is the present value of $8,000 to be received at the end of 6 years if the required rate of…

A: Present Value Means The Current Value Of Money Received In The Future, At a Specified Rate Of…

Q: A   ​$8037.58   investment matures in   6   ​years,   5   months. Find the maturity…

A: Investment amount (X) = $8037.58 n = 6 years 5 months = 6 (5/12) = 6.4167 years Interest rate = 2.7%…

Q: Assume a $100,000 3/1 hybrid with a 30-year maturity and an initial rate of 6 percent. 1. Calculate…

A: Mortgage loans are secured loans and paid by the equal monthly payments that carry payment for…

Q: If an investment of P750,000 that matures in 15 years but with certain specification that P 500000…

A: Here, Present value (PV) = P500,000 Earns half of 1% paid semi-annual for 5 years Rate = 1%/2 = 0.5%…

Q: For the calculation of interest, the bank assumes 30 days in a month, and 360 days in a year.  Ms.…

A: Today is June 1. Sustainable Corporation has an obligation of $25 million coming due on August 1.…

Q: Future Value A total of $8800 is invested at 6%interest, compounded daily.a. Find the future value…

A: Introduction: Future value can be defined as the value of an asset or a investment at a future date.…

Q: How long will it take $1387.00 to accumulate to $1627.00 at 6% p.a compounded semi-annually? Sute…

A: Compounding is a technique through which FV of present amount is calculated by using appropriate…

Q: Plan X: $50,000 Payments at the end of every year for 30 years. Plan Y: $50,000 Payments at the…

A: We have an annuity due and an annuity immediate. We have to find their PVs and FVs and then compare.

Q: Picollo had after tax earnings of P5,000,000 in 2014. The company needs P5,000,000 for new…

A: According to residual dividend policy, dividend is paid when amount left after set aside the amount…

Q: What is the effective interest rate per year in percent of a machine having a present amount of…

A: Present amount = P 900,000 Annual cost = P 890

Q: If the interest rate is i- 10%, calculate the following: 1. Do the Present Worth Analysis (PW) for…

A:

Q: What is the equivalent annual cost in years 1 through 8.00 of a contract that has a first cost of…

A: Given that:First cost in year = $62,000Annual costs of $20,000 incurred from years 3 through…

Q: The par value of 10% debenture is $1,000 with maturity is 3 years. What would be the price if…

A: In this problem we need to compute the price of debenture with following details : Par value = $1000…

Q: Assuming a discount rate of 6%, what is the present value of 100,000 per year for 12 years if the…

A: The payments occur at the beginning of each period is called an annuity due. Present value of…