An investment of P40,000 has a revenue of X pesos at the end of the first and second year. Given a discount rate of 15% compounded annually, find so that the net present worth of the investment is zero. Answer in whole number.

Q: what is the future value of cash flow of ¢2,000.00 for the first month and a monthly rise of 0.1%…

A: 1st deposit =2000 Increase per month = 0.1% = 0.001 Increase Factor(r) = 1+0.001 = 1.001 Number of…

Q: Project A costs $4,800 and will generate annual after-tax net cash inflows of $1,700 for five years.…

A: Net Present value = Present Value of Cash Flow - Initial Investment

Q: Of the following investments, which would have the lowest present value? Assume that the effective…

A: The objective of the question is to determine which of the given investments has the lowest present…

Q: Calculate the annualised rate of return of an investment that, for an initial investment of £1900,…

A: Rate of return is the amount of profit earned on the initial investment as percentage of initial…

Q: A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this…

A: To calculate the present value of payment that will receive after 1 year we will use the below…

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: 1. An investment of PhR. 6500.00 earns the following interest per year in-0: 2=0:025, is=0:01,…

A: The interest rate gives the value with which money grow with time and interest is being accumulated…

Q: An investment pays $2,100 per year for the first 7 years, $4,200 per year for the next 7 years, and…

A: The discount rate is 8.20% compounding quarterly. The cash flows have a periodicity of 1 year.…

Q: Project A costs $4,700 and will generate annual after-tax net cash inflows of $1,800 for five years.…

A: Given: Cost = $4,700 Net cash inflows = $1,800 Period = 5years rate = 12%

Q: A firm is scheduled to receive payment of $68,000 in 2 years.  What is the present value of this…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: The sum of $100 is invested at an annual compound interest of 6%. How long will it take for the…

A: Compound interest refers to the method of calculation of interest on investment where the amount…

Q: An investment will pay you $96,000 in six years. Assume the appropriate discount rate is 7.5 percent…

A: Compound = Daily = 365 daysFuture Value = fv = $96,000Time = t = 6 * 365 = 2190 daysDiscount rate =…

Q: For the given cash flow, if the equivalent uniform annual payments is $5000 and the interest rate is…

A: When the periodic cash flows are constant for the period, it is known as annuity. Annuity is…

Q: An investment will pay $16,700 at the end of each year for eight years and a one-time payment of…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: he annualised rate of return of an investment that, for an initial investment of £ 3100, produces a…

A: Rate of return is the amount of profit earned on the initial investment as percentage of initial…

Q: Find the accumulated value of an investment of $10,000 for 5 years at an interest rate of 4.5% if…

A: Future value is the expected value of current sum in the near future.

Q: Draw a Cash Flow Diagram for P10,535 being loaned out at an interest rate of 12% per year over a…

A: Simple Interest per annum = Principle * Rate * Time = P10,535 * 12% * 1 = 1264.2   Cash flow diagram…

Q: An investment pays $2,100 per year for the first 4 years, $4,200 per year for the next 3 years, and…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: A principal of 2450 Rials is invested at rate 5.25% compounded quarterly. After how many years the…

A: The time period or the number of years (NPER) refers to the time it would require for the investment…

Q: An investment will pay you $40,000 in 11 years. If the appropriate discount rate is 6.7 percent…

A: Present value is calculated by discounting the future cash flow using the appropriate discount rate.…

Q: Bank A offers 350 000 pesos at the end of 5 years plus 800 000 pesos at the end of 10 years. Bank B…

A: PRESENT VALUE: PRESENT VALUE =FUTURE VALUE1+Rn r=rate of interest n=number of years

Q: What is the present value of 600 TL which will be invested at the end of each year during the next…

A: As per the concept of time value of money the worth of money changes with passage of time.To compute…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: To calculate the present value we will use the below formula   Present value = FV/(1-d)n Where FV -…

Q: A firm is scheduled to receive payment of $32,000 in 2 years.  What is the present value of this…

A: Present value of future cash flow can be calculated as follows: = Future Value/ (1 + rate)^number of…

Q: Find the time required for an investment of Php 5000 to grow to 7900 pesos at an interest rate of…

A: The amount of interest collected on a quarterly basis on an account or investment that is also…

Q: An investment will provide after-tax revenue of $22,336 per year for 7 years. What is the present…

A: After tax revenue (P) of $22,336 for a period (n) of 7 years will be received. Present value annuity…

Q: Find the accumulated value of an investment of $32,000 for 7 years at an interest rate of 4.2% if…

A: Value of investment = 32,000 Interest rate = 4.2% Time period = 7 years The value is compounded…

Q: A one million peso loan is to be paid annually at an interest rate of 8.00% pa compounded monthly.…

A: Loan amount (L) = P 1 million Interest rate = 8% compounded monthly. We need to find the annual rate…

Q: What is the present value of a perpetual stream of cash flows that pays 20,000 at the end of year…

A: In the given case, we have provided the expected cash flows in Year 1, perpetual growth rate and the…

Q: An investment pays $1,950 per year for the first 3 years, $3,900 per year for the next 8 years, and…

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

Q: An investment pays $2,500 per year for the first 4 years, $5,000 per year for the next 3 years, and…

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

Q: Kramer's investment project costs $14300 and has abbual cash flows of $3800 for six years. A. What…

A: The objective of this question is to calculate the discounted payback period for Kramer's investment…

Q: Kramer's investment project costs $14300 and has abbual cash flows of $3800 for six years. A. What…

A: The objective of this question is to calculate the discounted payback period for Kramer's investment…

Q: An investment involves annuity of 2424 php compounded 32.4 times a year at an interest3.24%. The…

A: Here, To Find: Annual difference in annuities if the interest is compounded only once a year =?

Q: 3. An amount of 50,000 was borrowed at an interest rate of 10% per year and was to be repaid over a…

A: When an amount borrowed is repaid over a period of time, the present value of all the cash payments…

Q: Project A costs $5,200 and will generate annual after-tax net cash inflows of $1,700 for five years.…

A: Net Present Value Net present value is a method of capital budgeting that are used to measure the…

Q: Find the present value of an investment if it is expected to provide annual earnings of $20,000 for…

A: Present value can be defined as how much is the worth of the future sum of money at present provided…

Q: A person buys a piece of lot for Php 107203 down payment and 10 deferred semi-annual payments of P…

A: The value of a cash flow which will occur at the future date at the current date is known as its…

Q: Consider the following investment. (Round your answers to the nearest cent.) $5,600 at  6 3/4%…

A: Time value of money concept says that if we invest a particular sum of money today will not have…

Q: Calculate the present worth of the money if the ₱ 300.00 is invested at the end of each year for 8…

A: Present value can be calculates as follows = 1/(1+r)^1+ 1/(1+r)^2 + 1/(1+r)^3 + 1/(1+r)^n Here the…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.