Draw the necessary cash flow diagrams. Prob#1: Determine the present worth of an annual payment of P 4500.00 : If made at the beginning of the year for 12 years at 8% compounded annually. If made at the end of each month for 5 years at 4% compounded monthly. If 15 payments start at the end of year 4 at 6% compounded annually.

Draw the necessary cash flow diagrams. Prob#1: Determine the present worth of an annual payment of P 4500.00 : If made at the beginning of the year for 12 years at 8% compounded annually. If made at the end of each month for 5 years at 4% compounded monthly. If 15 payments start at the end of year 4 at 6% compounded annually.

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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Suppose that P400 is deposited each year into a bank account that pays 8% interest annually. If 12 payments are made into the account, how much would be accumulated in his fund by the end of the 12th year? The first payment occurs at time zero (now). Draw a cash flow diagram too.
Suppose that P 4500 is deposited each year into a bank account that pays 8% interest compounded quarterly. How much would be accumulated in his fund by the end of the 4th year? The first payment occurs at time zero (now). Please draw a cash flow diagram. Thank you
A machine has the following cash flows for the last two years of service. The MARR is 10% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Calculate the EUAC of the machine if kept in service over the remaining two years O A. $49,600 O B. $24,929 O C. $37,500 O D. $27,500 O E. $22,100 (b) Calculate the marginal cost of the machine for year 2. OA. $37,500 O B. $22,100 OC. $24,929 O D. $27,500 O E. $49,600 Year 0 1 2 Market Value $45,000 31,000 24,000 (・・・ O&M Costs $9,000 12,000
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What is the present value of end-of-year cashflows of $1,000 per year, with the first cashflow received three years from to day and the last one 10 years from today? Use a discount rate of 12 percent
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