Exercise B-17 (Algo) Future value of an amount plus an annuity LO P2, P4Starr Company decides to establish a fund that it will use 3 years from now to replace an aging production facility. The company willmake a $110,000 initial contribution to the fund and plans to make quarterly contributions of $51,000 beginning in three months. Thefund earns 16%, compounded quarterly. (PV of $1, FV of $1, PVA of $1, and FVA of $1)Note: Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to thenearest whole dollar.What will be the value of the fund 3 years from now?× Answer is complete but not entirely correct.Table Values are Based on:n =i =1216% ☑PresentTable FactorFuture ValueValueInitial InvestmentPeriodic InvestmentsFuture Value of Fund$110,0001.7908 $196,988 ×51,0006.8941 x351,599 x$548,587

Future value is a value of an investment or asset on a specific date in the future based on growth…

Answered: Exercise B-17 (Algo) Future value of an…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 19E

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Starr Company decides to establish a fund that it will use 4 years from now to replace an aging production facility. The company will make a $109,000 initial contribution to the fund and plans to make quarterly contributions of $52.000 beginning in three months. The fund earns 4%, compounded quarterly (PV of $1 EV of $1. PVA of S1, and EVA of 5) (Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the nearest whole dollar) What will be the value of the fund 4 years from now? Table Values are Based on 1% Present Value Future Value $ 100.000 S Initial investment Periodic Investments 52.000 Future Value of Fund Table Factor 1.1726 127,813
Solve by using the sinking fund or amortization formula. (Round your answer to the nearest cent.) Sinking fund payment (in $) Sinking Fund Payment $ Payment Frequency every 3 months Time Period (years) 6 Nominal Rate (%) 6.0 Interest Compounded quarterly Future Value (Objective) $9,000
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A machine is to be purchased for P155,000 it has an estimated life of 8 years and a salvage value of P6000. A sinking fund is to be established so money will be available to purchase a replacement when the first machine wears out at the end of 8 years. An amount of P14,008 is to be deposited at the end of each year during the lifetime of the first machine into this sinking fund. What interest rate (%) that this fund must earn to produce sufficient fund to purchase the replacement machine at the end of 8 years? Select one: a. 12% b. 8% c. 9% d. 10%*please do not use excel
A machine is to be purchased for P155,000 it has an estimated life of 8 years and a salvage value of P6000. A sinking fund is to be established so money will be available to purchase a replacement when the first machine wears out at the end of 8 years. An amount of P14,008 is to be deposited at the end of each year during the lifetime of the first machine into this sinking fund. What interest rate (%) that this fund must earn to produce sufficient fund to purchase the replacement machine at the end of 8 years?
A machine is to be purchased for P155,000 it has an estimated life of 8 years and a salvage value of P6000. A sinking fund is to be established so money will be available to purchase a replacement when the first machine wears out at the end of 8 years. An amount of P14,008 is to be deposited at the end of each year during the lifetime of the first machine into this sinking fund. What interest rate (%) that this fund must earn to produce sufficient fund to purchase the replacement machine at the end of 8 years? Select one: a. 12% b. 9% c. 8% d. 10%

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