machine that is expected to be obsolete in 5 years. The machine is worth P104703. The prevailing interest rate is 15%/year. the estimated annual gross incomes from the use of this machine is as follows: Year Inco me 1 2 Php Pho 25,0 26,0 00 00 Add your answer 3 Php 29,0 00 Round your answer to 2 decimal places. 4 Php 30,0 00 5 32,0 00
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- An item will need replacing in 6 years from now at a cost of P128,000.00. How much should the owner save at the beginning of each 3 months in order to replace the old item, if his savings earn interest at 10% compounded quarterly? * P3,956.84 P6,982.28 O P7,156.84 O P3,860.33What's the future value of $10,000 after 10 years if the appropriate interest rate is 10%, compounded monthly? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $25,937.42 $27,070.41 O $10,000What is the value today of a money machine that will pay $1,507.00 per year for 10.00 years? Assume the first payment is made today and that there are 10.0 total payments. The interest rate is 7.00%.
- Carla Vista Company is considering investing in an annuity contract that will return $34,500 annually at the end of each year for 15 years. Click here to view the factor table. What amount should Carla Vista Company pay for this investment if it earns an 8% return? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, e.g. 25.25.) Carla Vista Company should pay $A new oven will save s00 per year in eiectricity expense. How much can we afford to pay for this oven if it is expected to last 13 years? The interest rate is 10% per year Click the icon to view the interest and annuity table for discrete compounding whan /- 10% per your. The atfordable amount of payment is S (Round to the nearest dollar.)You want to start to save for a major purchase. You can invest P320 every three months for 3 years and 9 months and you can earn 5.34% compounded quarterly. What is the amount of interest that you make during the entire term? * 85346.01 B5275.58 2951.66 O 2964.36
- 1. You are promised an 8-year streams of income from buying a new technology at the initial amount of P 40,000.00. If the income increases by 3%, 4%, 5% and 6% respectively from the 2nd to 5th year then return to initial amount from the 6th to the 8th year, what is the present value of stream of income if the current interest prevailing is 6.5%? 2. You bought a new machine worth P 345,000.00. Research on this machine showed that it will reduce cost of production in the following sequence: Year 1 = P 22,500; Year 2 = P27,300; Year 3 = 30,500.00; Year 4 = 32,450 and Year 5 = 29,600. If the current interest rate is 7.2%. Should the machine be bought?The maintenance on a machine is expected to be P3,500, P7,000, P10,500, and 14,000 for the second, third, fourth, and fifth year, respectively. Then the present equivalent value at the beginning of the first year if the interest is 6% per year is Blank 1. Blank 1 Add your answerHow much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
- Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will provide $20,000 annual savings for 10 years and can be sold for $50,000 at the end of the period, what is the present value of the machine investment at a 9% interest rate with savings realized at year end?How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one year from now and the rate is 8%?You are trying to value the following investment opportunity: The investment will cost you $22151 today. In exchange for your investment you will receive monthly cash payments of $5195 for 9 months. The first payment will occur at the end of the first month. The applicable effective annual interest rate for this investment opportunity is 7%. Calculate the NPV of this investment opportunity. Round to two decimals (do not include the $-sign in your answer).