A small business purchased now for P70,000 will lose P8,600 each year for first 5 years. An additional investment of P35,000 in the business will required at the end of the five year.
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A: To Find: Capital Availability
A small business purchased now for P70,000 will lose P8,600 each year for first 5 years. An additional investment of P35,000 in the business will required at the end of the five year. After 15 years the business can be sold for P90, 000. What should be the profit each year from the fifth through the fifteenth year to obtain a
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- A small business purchased now for P50, 000 will lose P9, 600 each year for first 4 years. An additional investment of P30,000 in the business will required at the end of the fourth year. After 15 years the business can sold for P70, 000. What should be the profit each year from the fifth through the fifteenth year to obtain a rate return of 25%? Ans. P55.0831. A small business purchased now for P 500,000.00 will lose P96,000.00 each year for the first four years. An additional investment P300,000.00 is required at the end of fourth year. After 15 years the business can be sold for P700,000.00 . What should be the profit each year from the 5th to 15th year to obtain a rate of return of 25%?Your firm rents office space for P250,000 per year, due at the BEGINNING of each year. If your firm's hurdle rate is 10%, what is the present value of five years' worth of rent?
- A business worth $180,000 is expected to grow at 12% per year compounded annually for the next 4 years. (a) Find the expected future value. (b) If funds from the sale of the business today would be placed in an account yielding 8% compounded semiannually, what would be the minimum acceptable price for the business at this time?ali business with 780000 is expected to grow at 10% per year compounded annually for the next 4 years. Find (a) the expected future value (b) if funds from sale of the business today would be placed in an account yielding 6% compounded semi annually, what would be the minimum acceptable price for the business at this timeif 10, 000 is invested in a certain business at the start of the year, the investor will receive 1, 000 at the end of each of the next 7 years. What is the present value of this business opportunity if the interest rate is 5% per year?
- Your start-up company's net profit next year will be $50,000, and you then expect that to increase by $5,000 for each of the following 4 years. You now are asking the bank for a $25,000 loan to buy some new equipment, and the loan officer asks you for the current equivalent annual worth of your net profit over your projection period -- WITHOUT the new equipment. Your interest rate is 3% per year. What is the amount of that equivalent annual worth? $61,714 $57,316 $84,754 $59,705 $82,316Suppose you invest $2,000 today and receive $11,000 in five years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires $2,000 upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the amount you will receive each year?If $10,000 is invested in a certain business at the start of the year, the investor will receive $3,000 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 3% per year?
- A man's investment of P100,000 is expected to yield a regular income of P25,000 per year for 10 years. Determine the benefit cost ratio if money is worth 10% per annum.What is the rate of return on an investment of $10,606 if the company will receive $2,000 each year for the next 10 years? Please show work.Suppose you invest $3,000 today and receive $10,000 in 25 years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires $3,000 upfront, but pays an equal amount at the end of each year for the next 25 years. If this investment has the same IRR as the first one, what is the amount you will receive each year? a. What is the internal rate of return (IRR) of this opportunity? The IRR of this opportunity is%. (Round to two decimal places.) b. Suppose another investment opportunity also requires $3,000 upfront, but pays an equal amount at the end of each year for the next 25 years. If this investment has the same IRR as the first one, what is the amount you will receive each year? The periodic payment that gives the same IRR is $ (Round to the nearest cent.)