ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
For a given company: (1) Compute the PV of a
an annual cash flow of Php200 (million) at an annual interest rate of 5% ; and
(2) Compute the PV of a perpetual bond that pays a monthly cash flow of Php1,000 at
an annual interest rate of 12%
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- 3. The Department of Public Works and Highways (DPWH) awarded two contracts worth a combined Php55M to improve (i.e., deepen) a retention basin and reconstruct the spillway that was severely damaged in a flood 2 years ago. The DPWH said that, because of the weak economy, the bids came in Php48M lower than engineers expected. If the projects are assumed to have a 20-year life, what is the annual worth of the savings at an interest rate of 6% per year? A Php25.83k B Php4.18M Php1.30M D Php82.83karrow_forwardHow much money must you invest today in order to withdraw ₱ 14,766 annually for6 years if the interest rate is 2.24% if payments are done every beginning of the month?arrow_forwardWhat rate of interest, compounded quarterly, should be provided by the bank if you want to raise Php 4,325 from a bank loan of Php 2,000 for five years?arrow_forward
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