Determine the present equivalent value (PW at 0) of the following cash flow when the annual interest rate varies as indicated: Year Cash flows 2,000 2. 2,000 4. 7,000 47. 5% 6% 61% 4 Years Select one: O a. 9,459.5 O b. 8,237.0 Oc 7,829.5 Od 86445 Oe 9,052.0

Determine the present equivalent value (PW at 0) of the following cash flow when the annual interest rate varies as indicated: Year Cash flows 2,000 2. 2,000 4. 7,000 47. 5% 6% 61% 4 Years Select one: O a. 9,459.5 O b. 8,237.0 Oc 7,829.5 Od 86445 Oe 9,052.0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Peter would like to save money to buy a telescope, how much would he need to deposit annually to…

A: Future Value = 30,000 Rate of interest (r) = 8% Time period (n) = 5

Q: A loan of $245,000 is to be repoid in equal quarterly payments over a period of 5 years. If the…

A: Given, Loan amount F = $245,000 Time n = 6 years = 6 * 4 = 24 Interest rate r= 14.5% compounded…

Q: Approximately, what is the value of (P) if A=420, n=13 years, and i= 12% per year? O a. 2240 Ob.…

Q: Cardo Dalisay deposited P1,000, P1,500, and P2,000 at the end of the 2nd year, 3rd year, and 4th…

A: For finding out the equivalent worth of the gradient , firstly we have to define the gradient value…

Q: Find the value of X for the following cash flow in the way that the total The present value is equal…

A: Required equation is: PW = [4,000 x P/A(15%, 5) x P/F(15%, 2)] + [X x P/F(15%, 11)]

Q: For the below cash flow, knowing that: i=10% per year Present equivalent = 500 3000 O a. 484.68 O b.…

A: To calculate the present equivalent of the cash flow provided, we need to consider the information…

Q: Question 3 If a machine cost 10,000 and last for 15 years, at which time flows with a 20 % annual…

A: Comparable yearly expense (EAC) is the yearly expense of purchasing, working, and keeping a resource…

Q: Given the cash flow table below, determine the unknown value "X" for an interest rate of 6%. Year 2…

A: Given: interest rate=6% To find: Value of X

Q: A loan of $300,000 is repayable by an annuity payable half-yearly in arrear for 20 years. The…

A: Given information Loan amount=$300000 Year of payment=20 Years Payable half yearly T=20*2=40 times…

Q: An equipment can be bought on installment basis with 24 monthly payments of P3,440, each payable at…

A: Interest rate = 12 % compounded monthly Monthly rate = 1 % Time = 24 months Payment = monthly

Q: In order to buy an apartment unit, Meryl needs to spend a total of $300,000 today and equal monthly…

A: Total Amount spent today = 300,000 Monthly Payment = 2500 n = 26 years r = 7% compounded monthly

Q: A new CNC lathe machine requires an investment of $300,000 today and it returns $69,000 per year for…

A: here we calculate the equivalent cost of the machine by using the given information , so the…

Q: ma Good-Student is an engineering student at AMU. She is need of a vehicle to commute to school. She…

A: Compound interest is extra interest to the principal amount of a loan or deposit, or in simple…

Q: At the end of every year you deposit $2.000 into an account that earns 9% interest per year. What…

A: The Balance in the account after the 30th deposit can be calculated by the following the formula…

Q: If the effective annual interest rate is 16%, what is the nominal annual rate if compounding is…

A: Interest rate is the reward for the saver and the cost to the borrowing. Interest rate is an…

Q: Identify the following interest rates as nominal or effective: (ABET, SO1) A: 1%= 6% per semiannual,…

A: When comparing the nominal interest rate and effective interest rate, the primary difference between…

Q: Twelve years ago, an investor bought a certain number of shares of stock for which he paid P100 per…

A: Given: The number of stocks purchased 12 years ago is = P100 per share The dividend received for the…

Q: Question 6 Find the correct numerical value for the following factor from the compound interest…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: What cash payment is equivalent to making payments of $1551.00 at the end of every year for 7 years…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: On their saving accounts, Al- Rajhi Bank offers an annual interest rate of 16% nominal, Compounded…

A: Given information, Present value (p)= $22,000 Interest rate (r)= 16% Compounded period (m)= 4…

Q: 5) Find the present worth at i=10% per year for the cash flow shown below. $4,000 0 1 $3,000 2 3 4 5…

A: Cash flow refers to the movement of money into or out of a business or individual's financial…

Q: If a sum of $7000 is deposited now, $5500 is deposited 3 years from now, And $3000 per year in years…

A: Given A sum of $7000 is deposited now. $5500 is deposited 3 years from now. And $3000 per year in…

Q: [CLO-1] The options for investing money are represented as the following: 1. 5% APR compounded…

A: Effective annual rate = [1 + i/n]n - 1 Where i =Interest rate, n = Compounding periods.

Q: If the first payment of $12,000 is received now, what is the present worth of a certain contract,…

A: The present value method is an equivalency method in which a project's cash flows are discounted to…

Q: What is the present equivalent (at EOY 0) of the following cash-flows if the annual interest rate is…

A: The present value of the cash flow is the present worth of cash now that will be received in the…

Q: Find the net present worth of the following cash flow series at an interest rate of 9%.

A: Net present value (NPV) formula: NPV = ∑i=1nCi(1+r)i - Initial investment. Where Ci is cash flow in…

Q: If money is worth 7%, obtain the present value of a perpetuity of P64,500.00 payable annually when…

Q: Consider an EOY geometric gradient, which starts at EOY 2 with an initial value $13500 and continues…

A: A geometric gradient refers to a series of values or cash flows that change by a constant ratio over…

Q: Determine the present equivalent value (PW at 0) of the following cash flow when the annual interest…

A: The present value (PV) of a future sum of money or stream of cash flows is the current value…

Q: Mr. Consunji plans to retire in fifteen years and wants an account that will pay him P25,000 a year…

Q: An annual operating cost of the project starting from first year is $40000. What is the total future…

A: The annual operating cost = $40000 Total future worth after 9 years =? Interest rate = 12%

Q: What is the nominal annual interest rate if the effective annual rate is 8.1% and compounding is…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Sarah borrows some money to buy a new car. The car dealership allows her to defer payments for 12…

A: Present Value refers to the discounted value of a series of future payments or of a lump sum amount…

Q: John plans to establish an investment fund for his retirement. He plans to deposit $4,500 the first…

A: The future value, of a cash flow series refers to its future value on a specified date with a…

Q: Question 1 The amount of money deposited 25 years ago at 5% interest that would now provide a…

A: Present value refers to the current value of a future sum of money or cash flow, discounted at an…

Q: Determine the present equivalent value (PW at 0) of the following cash flow when the annual interest…

A: Present value of all cashflows discounted at given interest rate Year 1 = 2000 / 1.04 = 1923 Year…

Q: Approximately, what is the value of (F) if P-1940, n=2 years, and i= 2.5% per year? Select one: O a.…

Q: The compound interest on a certain amount of money for 2 years at 10% per annum is P525.00. How much…

A: Compound interest is calculated on each year on accumulated amount including interest . This is why…

Q: P17.For Figure shown below if the annual interest rate is 6% What is the present equivalent value?…

A: Present worth is a financial metric used in capital budgeting and investment analysis to evaluate…

Q: #50 into an account You in vest that collects 1%o in terest each month. You add an additional 50…

A: Given that; $500 is invested into an account that pays 1% interest monthly. if $50 is added each…

Question

Determine the present equivalent value (PW at 0) of the following cash flow when the annual interest rate varies as indicated:
Year
Cash flows
2,000
2-
2,000
3.
4
7,000
47%
5%
6%
61%
2.
y ears
Select one:
Oa.9,459.5
O b. 8,237.0
Oc.7,829.5
Od 8,644.5
Oe 9,0520

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

53-54
An engineer on the is planning to retire in 10 years. She has accumulated savings of $450,000 that are in an account paying 7% interest compounded quarterly. If she makes no more deposits , how much would her retirement savings be when she retires? O $900,719 O $885,215 O $765,000 O $1,000,750
An original loan of P200,000 was made at 10% simple interest per year for 4 years. At the end of this time, no interest had been paid and the loan was extended for 6 more years at a new interest rate of 12% per year compounded monthly. What is the total amount owed on the 10th year if no intermediate payments are made? O P507,681 O P552,670 O . P431,785 O P573,188
If you invest $7,000 at 10% per year, compounded continuously, how much would it be worth in five years. Select one: O a. 11,543 O b.8,245 Oc.13,192 O d. 10,389 O e. 9,070
Please I need answer Asap. thanks
What is the value of (A/G, 3.3%, 10)? O a. 4.5050 Ob. 3.3297 O c. 5.0117 O d. 4.0220 e. 4.2326
In his request to defer his payment, a man was asked to pay Php34317.60 after 60 days for an appliance whose cash price is Php325800. What simple interest rate was charged to him? O 16% O 32% O 10.67% O 5.33%
6. Find the equivalent present worth of the following cash flow if i = 10% (compounded annually). 0 1 2 $1000 3 4 $1000 5 6 7 8 9 $1000 10 $4000 Years
You wish to have $20,000 SR in an account 6 years ftrom now. How much money must be deposited in the account now to have this amount if the account pays 7% compounded annually? O a 10925 O b. 13327 Oc NA O d. 12234 O e. 7217 Clear my choice
An IT man buys boxes of diskettes and is to pay for it by making 30 monthly payments of P50.00 each, with interest on the unpaid balance at 6% interest rate. What is the purchase price? O a. P1,039.00 O b. P1,930.00 O c. P1,390.00 O d. P1,309.00
A $1,000 bond pays an interest of $50 each year for 20 years. The bond will mature at the end of 20 years and return the original $1,000. If there is 2% annual inflation during this period, what rate of return does the investor receive? O 4.94% O 2.94% O 1.949% O 5.94%
Suppose you are offered the alternative of receiving either $2,500 at the end of 6 years or $1,200 today. What interest would make you indifferent to your choice between $1,200 and the promise of $2,500 at the end of sixyears? OA 6% OC 13% OD 12% QUESTION 10 What single payment at the end of year 8 is equivalent to an equal annual series of payments Of $600 beginning at the end of yea r 3 and ending at the end of year 12? The interest rate is 20% compounded annually. 12 $600 44 4 4 44444 QUESTION 10 What single payment at the end of year 8 is equivalent to an equal annual series of payments Of $600 beginning at the end of yea r3 and ending at the end of year 12? The interest rate is 20% compounded annually $600 12 OA S4,347 OB 55216 OC S7511 OD S0.250