A company wants to save GH¢100000 over the next 5 years so that they can expand their plant facility. How much must be deposited at the end of each year if their money earns interest at j1 = 6%? Construct a complete sinking-fund schedule.

Q: 5. A company is trying to consider buying an equipment with an initial cost of $80,000. The salvage…

A: The question is related to Time value of money. The details are given.

Q: What amount of money invested today at 15 % interest can provide the following scholoarships: Php…

A: Given, R= 15% A1= PHP 30,000 N1= 6 A2= PHP 40,000 N2= 6 A3= PHP 50,000

Q: A company makes fixed annual payments to a sinking fund to replace equipment in five years’ time.…

A: Future Value of Money Required = 200,000 Time Period = 5 years Interest  Rate = 10%   Future Value…

Q: A company estimates that it will need $300,000 in 9 years to replace an important machine. If it…

A: Required amount = $300,000 Time period = 9 years  Interest rate = 6.5% compounded monthly

Q: How much money could a fim borrow to finance a project if it is expected revenues of $240,000 yearly…

A: The time value of money states that the value of money received today will be worth more in the…

Q: Sheridan Company will invest $830000 today. The investment will earn 8% for 7 years, with no funds…

A: The answer is as fallows

Q: Answer the following questions related to Dubois Inc. a.    Dubois Inc. has $600,000 to invest. The…

A: As you posted multiple questions we are answering only first question kindly repost the unanswered…

Q: engineering company expects to expand its plant facilities in 6 years at an estimated cost of…

A: a) Solved using Financial Calculator  N = 6 years * 4 = 24 I/Y = 10%/4 = 2.5% FV = 68,000 CPT PMT =…

Q: What is the present worth (t=0) of this series of cash flows (arithmetic series)?

A: Present Worth: It is the present value of the cash flows of an investment or a project. These cash…

Q: A certain project which requires an investment of P 80,000 will produce cash savings after taxes of…

A: Capital budgeting is the process by which a corporation examines potential large projects or…

Q: Crane Company will invest $830000 today. The investment will earn 4% for 6 years, with no funds…

A: Investment fund at the end of 6 years = Initial invetment x Future value factor (4%, 6 years)

Q: Acceleron is planning future expansion with a new facility in Indianapolis. The company will make…

A: Total value = $1.2 million Rate of interest = 10% Present value = $400000

Q: anticipated that it will be exhausted at the end of 20 years. If the sinking fund is 4%, what must…

A: Answer: As per given - A mine is purchased for php 1000,000.00 and it is anticipated that it will…

Q: A project that costs $2,500 to install will provide annual cash flows of $600 for the next 6 years.…

A: Given, Initial cash outflow (Cost of the project) = $2,500 Equal cash inflows per year = $600…

Q: An investment company wants to establish a sinking fund to pay off debts of $85 million which come…

A: Formulas: Future value = amount*((1+rate)^years - 1) / Rate

Q: Delta Enterprises, Inc. has a WACC of 8% and is considering a project that requires a cash outlay of…

A:

Q: Ikhwan's Sports Store needs RM840,000 in 6 years. If funds are invested an account earning 8% per…

A: Sinking fund is a system which is used by the bussiness to arrange funds for some future objectives…

Q: Sunland Company will invest $910000 today. The investment will earn 8% for 7 years, with no funds…

A: This problem can be solved using FV of $1 table factor. It can also be solved using Excel also.

Q: How much would a business have to invest in a high-growth fund to receive $22,000 every month for 5…

A: Solution:- When an equal amount is receivable each period, it is called annuity. So, present value…

Q: You deposit $50,000 into a fund that pays 5% per year compounded annually. You plan to make the…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: A Company sets aside Peso 200,000 at the end of each year for plant expansion. If the fund draws 8%…

A: Compound interest (also known as compounding interest) seems to be interest computed on a mortgage…

Q: If P20,000 is invested in a fund that pays 10% compounded annually, how much money will be in the…

A: Answer -    Part 1 -  If P20,000 is invested in a fund that pays 10% compounded annually, how much…

Q: Since 2007, a particular fund returned 13.2% compounded monthly. How much would a $6000 investment…

A: Investing is a critical component of wealth growth. It enables the investor to fight inflation,…

Q: What's the initial (T0) cash flow from changes in net working capital?

A: Net Working Capital: It is a measure of short-term liquidity and is computed from the difference…

Q: At present, a foundation who has 6 million deposit in bank with interest of 10% compounded annually,…

A: As we can see that the cost part comes only within the 4th year and we only have 5 years once the…

Q: The annual income from the mine is P100,000 and the life of the mine is 25 years. Find the price…

A: In this question one has to solve the present value of an annuity which pays a constant cash flow of…

Q: The payback period of a project that costs $1,000 initially and promises after-tax cash inflows of…

A: Here, Cash Inflow is $3000 each year Initial Investment is $1,000

Q: How much would a business have to invest in a high-growth fund to receive $14,000 every month for 6…

A: Investments are the ways by which individuals and corporations park or save their money and funds in…

Q: If $90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of $23,138.32…

A: solution: Let interest rate earned = i Annual withdrawls = $23,138.32 Amount invested (Present value…

Q: Abc plans to construct an adiitional building at the end of 10 years at an estimated cost of…

A: first calculate the payments for the first 5 years N = 10, FV = 5,000,000, rate = 13%, PV = 0 use…

Q: Comparing Annuities. Which of these 20-year 12% investment plans is best and why? Support answers…

A: The Question relates to Present Value of Money. For comparing these alternatives, we have to…

Q: Company B plans to finance a project that will require an 5-year cleanup period. If it borrows $5…

A: Initial Investment “PV” = $5,000,000 Number of years “n” = 5 Interest rate “r” = 10% compounded…

Q: Your company estimates it will have to replace a piece of requirement at a cost of $800,000 in 5…

A: Sinking fund is a dedicated fund set to fund a future liability by depositing small amounts…

Q: XYZ plans to construct an additional building at the end of 10 years fo an estimated cost of…

A: Here we will use the concept of time value of money. As per the concept of time value of money it is…

Q: You pay off a $200, 000 loan at effective annual interest rate 10% by making interest payments each…

A:

Q: What is the present worth of the project, whichrequires $130,000 investment now and receives$40,000…

A: given, rate =14% Initial investment = $130,000 annual cashflow=$40,000 year=6

Q: Suppose you wish to purchase a factory that will yield an annual return of $12,000 for 12 years,…

A: Here, Required Return on Investment is 8.25% Annual Return from Investment is $12,000 Time Period of…

Q: In order to have ₱1 million in a fund at the end of 15 years, how much must be deposited in the fund…

A: Amount to be deposited per quarter can be calculated using PMT function in excel. PMT(rate, nper,…

Q: ter's Shop wants to start a fund to accumulate half of the expected P600,000 cost of expanding their…

A: As the money is being deposited than money growth with time and amount of compounding and grow to…

Q: Cross Ltd has bought an asset with a life span of 4 years. At the end of the 4 years, replacement of…

A: The sinking fund is the amount of money accumulated by the company to pay off a debt or any bond. A…

Q: For a major plant expansion project, a company wants to have $63 million 5 years from now If the…

A: Solution: Money is invested somewhere to earn interest on it. The amount initially deposited in…

Q: Emerald Enterprises is developing a new product at the cost of $ 50,000. The new product is expected…

A: Option b is correct i.e. 5 years. Refer calculation below.

Q: $3000 into the fund. If the investments grew at a rate of 8% per year over the 15 years, how much is…

A: Information Provided: Present value = $10,000 Interest rate = 8% Term = 15 years Annual deposit =…

Q: Northern Alliance Medical facility is considering producing a home blood pressure instrument…

A: Net present value is the difference between the present value of cash inflows and present value of…

Q: Norwood Investments is putting out a new product. The product will pay out $25,000 in the first…

A: Value of perpetuity is present value of cash flow for perpetuity.

Q: Second Hand Software needs to accumulate $12,000 in 3 years to meet future needs. What sinking fund…

A: Sinking fund is defined as the method of the funds repayment, which borrows by the bond issue by the…

Q: At the beginning of each year, you deposit the following into a growthmutual fund that earns 6…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.