e. Fishbone Corporation wants to withdraw $120,000 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%?
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- If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate?Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is the NPV using 8% as the discount rate?
- How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?Manatee Corporation wants to withdraw $500,000 (including principal) from an investment fund at the end of each year for 12 years. What should be the required initial investment at the beginning of the first year if the fund earns 9%?Kingbird Corporation wants to withdraw $126,920 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%? Especially confused about what including principal means for the problem.
- Ayayai Corporation wants to withdraw $125,900 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Required initial investment %24A start-up engineering company invested in a fund that promises 14% interest compounded monthly. It requires P4,000 end-of-month payments for the next 10 years. This fund can be withdrawn after 15 years. Assume that the investment occurs at time zero (now). What will be the equivalent fund value on the th 15 payment?An investment company wants to establish a sinking fund to pay off debts of $85 million which come due in 10 years. The company can earn interest at the rate of 9 percent per year compounded annually. If the first deposit is made at the end of this year, what annual deposit will be required to accumulate the $85 million?
- Sheridan Company will invest $830000 today. The investment will earn 8% for 7 years, with no funds withdrawn. In 7 years, the amount in the investment fund isAn investor pays $275,000 for a mine that will produce level annual revenue for 18 years. What should the level annual revenue be (received at the end of each year) if the investor is to receive 4% annual return on the investment while recovering the principal in a sinking fund earning 2.5% per year?Purple Cloud Inc. has $500,000 to invest. The company is trying to decide between two alternative uses of the funds.One alternative provides $65,000 at the end of each year for 10 years, and the other is to receive a single lump-sumpayment of $900,000 at the end of the 10 years. Which alternative should Purple Cloud select? Assume the interestrate is constant over the entire investment