Each of the following scenarios is independent. All cash flows are after-tax cash flows. Required: 1. Michael Kimathi has purchased a tractor for $87,500. He expects to receive a net cash flow of $33,000 per year from the investment. What is the payback period for Michael? Round your answer to two decimal places. 2.65 years

Answer each of the following independent questions. Ignore personal income taxes. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Suppose you invest $4,100 in an account bearing interest at the rate of 10 percent per year. What will be the future value of your investment in five years? 2. Your best friend won the state lottery and has offered to give you $11,600 in four years, after he has made his first million dollars. You figure that if you had the money today, you could invest it at 8 percent annual interest. What is the present value of your friend’s future gift? 3. In four years, you would like to buy a small cabin in the mountains. You estimate that the property will cost you $68,500 when you are ready to buy. How much money would you need to invest each year in an account bearing interest at the rate of 4 percent per year in order to accumulate the $68,500 purchase price? 4. You have estimated that your educational expenses…

Assume Sheryl Jenkins wants to accumulate $12,241.30 in two years. She currently has $10,919.00 to invest. What interest rate must she earn on her investment (that is if she deposits $10,919.00 today) to have $12,241.30 exactly two years from today?

An investor is considering an investment that will pay $2,170 at the end of each year for the next 10 years. He expects to earn a return of 12 percent on his investment, compounded annually. Required: a. How much should he pay today for the investment? b. How much should he pay if the investment returns are received at the beginning of each year? (For all requirements, do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) a. Present value of ordinary annuity b. Present value of annuity due

An individual has $1,000 to invest and wants to accumulate $1,470 in 5 years. What interest rate, compounded semiannually, must be earned to accomplish the objective?

John bought a car worth Php 1,000,000 if paid in cash. If paid on installment basis, he will pay Php 250,000 downpayment, Php 300,000 at the end of one year; Php 400,000 at the end of three years and a final payment at the end of five years. Interest rate is 20% compounded annually. a. Construct the cash flow diagram if paid on installment basisb. What will be the amount of the final payment?

engineering economics John bought a car worth $ 100,000 if paid in cash. If paid on installment basis, he will pay $ 20,000  downpayment, $ 30,000 at the end of one year; $40,000 at the end of three years and a final payment at the end of five years. Interest rate is 20% compounded annually.  a) Construct the cash flow diagram if paid on installment basis: b) What will be the amount of the final payment?

Please help me answer the following time value of money question. Michael makes a $500 investment.  At the end of 5 years, he has 700. Assuming that the interest is compounded monthly, what is the interest rate earned on his investment?

Please step by step answer.