a. a. Mr. Mwansa decided to use part of his retirement package to invest in heavy duty equipment for solar power project. Based on the data given in Table 1, calculate the payback period using the discount rate of 12%. What advice would you give to Mr. Zulu if he intends to purchase similar equipment using a bank loan with a maximum repayment period of 36 months? Table 1: Details of the costs Details Cost of Purchase of equipment Cost of fuel and maintenance Income earned from hiring out the equipment 2019 470,000 2020 2021 15,500 2022 15,500 17,000 18,000 160,960 190,000 210,000 220,000 2023 2024 20,000 2025 22,000 240,000 260,000 2026 25,000 20 280,000

a. a. Mr. Mwansa decided to use part of his retirement package to invest in heavy duty equipment for solar power project. Based on the data given in Table 1, calculate the payback period using the discount rate of 12%. What advice would you give to Mr. Zulu if he intends to purchase similar equipment using a bank loan with a maximum repayment period of 36 months? Table 1: Details of the costs Details Cost of Purchase of equipment Cost of fuel and maintenance Income earned from hiring out the equipment 2019 470,000 2020 2021 15,500 2022 15,500 17,000 18,000 160,960 190,000 210,000 220,000 2023 2024 20,000 2025 22,000 240,000 260,000 2026 25,000 20 280,000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Time to accumulate a given sum Personal Finance Problem Manuel Rios wishes to determine how long it will take an initial deposit of $7,000 to double. a. If Manuel earns 8% annual interest on the deposit, how long will it take for him to double his money? b. How long will it take if he earns only 5% annual interest? c. How long will it take if he can earn 10% annual interest? d. Reviewing your findings in parts a, b, and c, indicate what relationship exists between the interest rate and the amount of time it will take Manuel to double his money. a. If Manuel earns 8% annual interest, the amount of time to double his money is years. (Round to two decimal places.) C
TOPIC: ENGINEERING ECONOMICS Specific SYSTEMATICALLY. Show your COMPLETE solutions and BOX your final answers. Express all your answers in 2 decimal places. Instructions: Solve each problem NEATLY and 1. Gian paid an interest of Php 8000 on a salary loan for 5 years at 7 % interest. What was the original loan? How much did he pay at the end of 5 years?
You purchase a plot of land worth $54,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.22% APR, compounded monthly, and requiring monthly payments of $505. (Assume the value of the land is still $54,000. Round each answer to the nearest dollar.) (a) Assuming that you put some money down, what was your original loan amount (in dollars)? X $ (b) What is the outstanding balance (in dollars) on your loan after making 4 years of payments? $ 170255.84 (c) How much equity (in dollars) do you have in the garden after 4 years? $ X
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Your younger sibling asks you to borrow $20. You, a smart financial professional, agree but also charge interest on the $20. You plan to collect $5 from your sibling each week for 8 weeks to repay the initial loan. What is the NPV of this project, assuming you invest the $5 at 12%? a. $4.84 b. $2.11 c. $0 d. $6.88
Repaying a Loan While Mary Corens was a student at the University of Tennessee, she borrowed $9,000 in student loans at an annual interest rate of 10%. If Mary repays $1,300 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number.
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Calculating required down payment on home purchase. How much would you have to put down on a house costing $100,000 if the house had an appraised value of $105,000 and the lender required an 80 percent loan-to-value ratio?
Urgent, please answer the question below.This is how you answer the problem,(a) Identify the given (b)Identify the unknown or what is being asked in the problem(c)Solution, include the formula used to solve the problem(d)box the final answer
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You purchase a plot of land worth $54,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.66% APR, compounded monthly, and requiring monthly payments of $505. (Assume the value of the land is still $54,000. Round each answer to the nearest dollar) (a) Assuming that you put some money down, what was your original loan amount (in dollars)? $ (b) What is the outstanding balance (in dollars) on your loan after making 4 years of payments? (c) How much equity (in dollars) do you have in the garden after 4 years? $
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