EU Corporation plans to construct its own building at the end of 10 years for an estimated cost of P15,000,000.00. To accumulate this amount, it will have to make equal year end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building that originally intended to an estimated cost of P24,000,000.00. What should be the annual deposit for the last 5 years?
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- ELJ Corporation plans to construct its own building at the end of 10 years for an estimated cost of P15,000,000.00. To accumulate this amount, it will have to make equal year end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building that originally intended to an estimated cost of P24,000,000.00. What should be the annual deposit for the last 5 years? Answer. P2,203,175.82What will be the equivalent uniform annual amount that will be deposited in a bank for 15 years that will be replaced the capitalized cost of a project with the following cost; The initial cost is P2,000,000 and an additional cost of P500,000 at the end of every 5 years. The annual operating costs are P100,000 at the end of every year for the first 6 years and P160, 000 thereafter. In addition, there is expected to be a major repair work cost of P300, 000 every 13 yrs. Assume i =15%.XYZ plans to construct an additional building at the end of 10 years for an estimated cost of P5,000,000.00. To accumulate this amount, it will make equal year-end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building than originally intended to an estimated cost of P8,000,000.00 What should be the annual deposit for the last five years? Please provide CASH FLOW diagram. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Abc plans to construct an adiitional building at the end of 10 years at an estimated cost of P5,000,000. To accumulate this amount, it will deposit equal year-end amounts in a fund earning 13%. However, at the end of the fifth year, it decided to have a larger building estimated to cost P8,000,000. What is should be the annual deposit for the last five years?Cleanborn Ltd has bought an asset with a life span of 4 years. At the end of the 4 years, replacement of the asset will cost GH¢12,000. In this direction, the company has decided to provide for the future commitment by setting up a sinking fund account into which equal annual investment will be made at the end of each year. Interest rate on the investment will be 12% per annum. Required: a.Calculate the annual instalments b.Draw up the sinking fund schedule to show the growth fund c. Assuming the first payments will be made now and 12 months thereafter, what are the annual payments? d. Draw up the sinking fund schedule under (c)Cross Ltd has bought an asset with a life span of 4 years. At the end of the 4 years, replacement of the asset will cost GH¢12,000. In this direction, the company has decided to provide for the future commitment by setting up a sinking fund account into which equal annual investment will be made at the end of each year. Interest rate on the investment will be 12% per annum. Required:i. Calculate the annual instalmentsii. Draw up the sinking fund schedule to show the growth fundiii. Assuming the first payments will be made now and 12 months thereafter, what are the annualpayments? You are required to draw up the sinking fund schedule .
- Tyu plans to construct an adiitional building at the end of 10 years at an estimated cost of P5,000,000. To accumulate this amount, it will deposit equal year-end amounts in a fund earning 13%. However, at the end of the fifth year, it decided to have a larger building estimated to cost P8,000,000. What is the equal year-end payments made for the first five years?A constructed bridge requires no upkeep until the end of 2 years when P60,000 will be needed for repairs. After this P90,000 will be needed for repairs at the end of each year for the next 5 years, then P110, 900 at the end of each year for the next 5 years. If money is worth 13% compounded annually, what was the equivalent uniform annual cost for the 12-year period? Include cashflow diagram.A certain dam costs P400,000 and will serve the purpose for 20 years. At the end of that time it must be enlarged at a cost of P200,00O. If the dam had been built larger than originally, the cost would have been P500,000. Bonds pay interest at the rate of 5% per annum and the interest paid annually. Compare the two alternatives and calculate the saving or loss. O The first alternative is better O The second alternative is better
- In five years, P18,000 will be needed to pay for a building renovation. In order to generate this sum, a sinking fund consisting of three annual payments is established now. For tax purposes, no further payment will be made after three years. What payments are necessary if money worth 15% per annum? А. Р3,919.52 161. В. Р3,871.23 C. P3,781.32 D. P3,199.52A business set up a sinking fund so they will have a 62,000.00 to pay for a replacement piece of equipment in 11 years when the current equipment will be sold for scrap. If they make deposit at the end of every 2 months for 11 years in the investment that pays 7.4% compounded every 2 months, what size should each payment be?In 10 years, P20,000.00 will be needed to pay for a building renovation. To generate the sum, sinking fund with three annual payments is established now. For tax purposes no further payments will be made after three years. What payments are necessary if money is worth 10% per annum? O a. P3,200.65 O b. P3,110.65 O c. P3,100.65 O d. P3,150.65