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?
Q: Starr Company decides to establish a fund that it will use 10 years from now to replace an aging…
A: Future value is the value of the present cash flows in future. Value of the funds in 10 years is the…
Q: EU Corporation plans to construct its own building at the end of 10 years for an estimated cost of…
A: The concept of the time value of money (TVM) states that money accessible now is valued more than a…
Q: A machine is to be purchased for Php155,000; it has an estimated life of 8 years and a salvage value…
A: Sinking Fund: A sinking fund consists of periodic (usually annual) contributions to a fund in order…
Q: Buckeye Healthcare Corp. is proposing to spend $186,725 on an eight-year project that has estimated…
A: a. Calculation of Net Present Value, using rate of return 12%
Q: A company project needs to establish a fund within a ten-year period by making annual deposits of…
A:
Q: A machine is to be purchased for P155,000 it has an estimated life of 8 years and a salvage value of…
A: The future value of annuity due refers to the future value of a series of payments. The future value…
Q: A manufacturing company has determined that it will need $600,000 in 6 years for a new roof on its…
A: periodic payment formula: periodic payment=FV×rm1+rmm×n-1where,fv=future valuer=interest…
Q: ELJ Corporation plans to construct its own building at the end of 10 years for an estimated cost of…
A: Given: Years =10 Cost = P15,000,000 Interest rate = 13% Future value = P24,000,000
Q: A company project needs to establish a fund within a ten-year period by making annual deposits of…
A: Beginning of the year deposits (B) = P 90000 Let the end of the year deposits = X r = 6.2% n = 10…
Q: Recent sales of some real estate and record profits make it possible for a manufacturer to set aside…
A: Present value of fund (PV) = $ 1,100,000 Interest rate = 6.3% Semi annual rate (r) = 6.3%/2 = 3.15%…
Q: A project is estimated to cost $254,610 and provide annual net cash flows of $41,000 for eight…
A: Internal rate of return = Internal rate of return is a discount rate at the the present value of all…
Q: engineering company expects to expand its plant facilities in 6 years at an estimated cost of…
A: a) Solved using Financial Calculator N = 6 years * 4 = 24 I/Y = 10%/4 = 2.5% FV = 68,000 CPT PMT =…
Q: A project is estimated to cost $326,145 and provide annual net cash flows of $85,000 for eight…
A: The internal rate of return represents better profitability of an outlay. At 15% and 20% Net,…
Q: re to made to the fund
A: Money Required (Future Value) = 40,000 Present Value (value at start) = 0 N = 3 years Quarterly…
Q: 3. In five years, 180,000 will be needed to pay for a building renovation. In order to generate this…
A: Future value required (FV) = 180,000 Annual interest rate (R) = 15% Annual payment = P Future value…
Q: A company needs 60,000 in five years to buy a new equipment. In order to accumulate this, s a…
A: Given information : Expected amount 60000 Time period 5 Number of payments 3 Interest rate…
Q: A machine is to be purchased for P155,000 it has an estimated life of 8 years and a salvage value of…
A: Accumulated amount needed = P 155000 - P 6000 = P 149000 n = 8 years Annual deposit (A) = P 14008
Q: A project is estimated to cost $328,880 and provide annual net cash flows of $80,000 for six years.…
A: Internal rate of return (IRR) is the rate at which the initial cash outflow (or cost) is equal to…
Q: A manufacturing company has determined that it will need $700,000 in 6 years for a new roof on its…
A: A sinking fund can be referred to as a type of fund specially created to pay off debts. It is a fund…
Q: It is estimated that depositing 20,000 pesos every end of the 6 months in a sinking fund that gives…
A: Formula = A{(1+i)n -1}/i Where, A = amount deposited in every given period = 20,000 pesos i =…
Q: A company wants to save GH¢100000 over the next 5 years so that they can expand their plant…
A: GIVEN, FV = GH¢100000 N = 5 YEARS R=6%
Q: A Company sets aside Peso 200,000 at the end of each year for plant expansion. If the fund draws 8%…
A: Compound interest (also known as compounding interest) seems to be interest computed on a mortgage…
Q: A machine is to be purchased for P155,000 it has an estimated life of 8 years and a salvage value of…
A: Given information, Purchase price=P155,000 Salvage value =P6000 Therefore, Future value (F)=P155,000…
Q: A certain government funded city flood control system has an initial investment cost of $500,000.…
A: Initial Investment = $500,000 Operating Cost every year = $10,000 Every 5 years the repair and…
Q: Smith Investors places $50,000 in an investment fund. One year after making the investment, Smith…
A: IRR(internal rate of return) is the rate of return an investment generates in its lifetime expressed…
Q: McDonald's major distribution partner, The Martin-Brower Company, needs at least $1 million to build…
A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…
Q: A company needs 60,000 in five years to buy a new equipment. In order to accumulate this, sum a…
A: Accumulated amount needed = 60000 after 5 years Let the annual payment = A r = 18%
Q: Suppose that a machine costing $9000.00 is to be replaced at the end of 7 years, at which time it…
A: Amount needed in fund at the end of 8 years = replacement cost - salvage value = 9000-900 = 8100 Now…
Q: An Engineering Research foundation wishes to set up a trust fund earning 10% compounded annually to…
A: So the Engineering Research Foundation will required to set up trust fund earning 10% compounded…
Q: A municipality decides to purchase a small collection truck that has an expected life of 10 years of…
A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…
Q: plastic manufacturing company was intending to expand its production facilities starting 1989. The…
A: First we will find the Find the present value at the year 1979 then using pmt function we will…
Q: Part of the income that a machine generates is put into a sinking fund to pay for replacement of the…
A: Using Excel NPER function
Q: Abc plans to construct an adiitional building at the end of 10 years at an estimated cost of…
A: first calculate the payments for the first 5 years N = 10, FV = 5,000,000, rate = 13%, PV = 0 use…
Q: Sterling Corporation has borrowed $84,000 that must be repaid in two years. This $84,000 is to be…
A: Payback period = Initial investment/ Annual net cash flow
Q: The management of a condominium association anticipates a capital expenditure of $150,000 in 3 years…
A: Given that, Required Capital Expenditure (FV)=$1,50,000 Duration (n)=3*12=36 Rate of…
Q: The initial investment in a government-funded city flood control system is $500,000. From the…
A: In this we have to find out total present value of all cost.
Q: In five years, P18,000 will be needed to pay for a building renovation. In order to generate this…
A: Annuity refers to equal payments made in a fund at regular intervals. The amount so deposited…
Q: A 5-year plan to raise extra funds for public schools involves an “enrichment tax” that will raise…
A: a. 1st Year: 2nd YEAR : 3 rd Year : 4 th year : 5 th Year :
Q: XYZ plans to construct an additional building at the end of 10 years fo an estimated cost of…
A: Here we will use the concept of time value of money. As per the concept of time value of money it is…
Q: In anticipation of a much bigger volume of business after 10 years, a fabrication company purchased…
A: Annual sinking fund, I = S x i/(1+i)n-1 Where I =Annual installment required i=rate of interest…
Q: ter's Shop wants to start a fund to accumulate half of the expected P600,000 cost of expanding their…
A: As the money is being deposited than money growth with time and amount of compounding and grow to…
Q: Cross Ltd has bought an asset with a life span of 4 years. At the end of the 4 years, replacement of…
A: The sinking fund is the amount of money accumulated by the company to pay off a debt or any bond. A…
Q: Ayayai Corporation wants to withdraw $125,900 (including principal) from an investment fund at the…
A: The question is related to Presnt Value. In the given question the company wants to withdraw $125900…
Q: Denver University Copy Center buys three copier machines that each have a useful life of seven years…
A: The sinking fund is formed by the company to set aside some periodically to acquire new copier…
Q: Determine the amount needed now to purchase a machine for P100,000, provide an annual fund of…
A: Initial cost of machine = P 100,000 Annual cost = P 15,000 Life of machine = 10 Years Discount rate…
Q: Cargojet Corp. is preparing for the replacement of one of its jets in three years by making payments…
A: The question is based on the concept of sinking fund to accumulate the required amount at end . The…
Q: he company will make a $109,000 initial contribution to the fund and plans to make quarterly…
A: Explanation of Concept In the provided problem the basic concept of compounded interest is followed,…
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?
Step by step
Solved in 2 steps
- 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?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.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?
- 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%.For this investment, an initial amount of $25,000 should be paid this year (t=0). As of next year (t=1), five equal payments of $20,000 should also be paid (i.e., from t=1 to t=5). Thus, the sum of the required investment expenditure over those periods is $125,000. How much is the sum of the present value of the required investment expenditure over those periods, assuming that the annual interest rate is 5%?
- 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 payments will be made after three years. What payment is necessary if money is worth 15% per annum?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. P3,199.52An investment project provides cash inflows of $1087 per year for eight years. What is the project payback period if the initial cost is $4653?
- A company buys a piece of equipment for €2 million on January 1. The expected useful life is 6 years and the salvage value is estimated zero. The company intends to replace the equipment identically. The average expected price increase is 8% yearly. For this purpose, the company creates a special fund with annual equal payments at the end of each year during the lifetime. Cost of capital and earnings of the fund (i) is 10% per year. Compute the annual payment into the fund.A company project needs to establish a fund within a ten-year period by making annual deposits of ₱90,000, where deposits are to be made at the beginning of each year. If the company board decides to change the plan and prefers to make the deposits at the end of each each instead, what amount should the annual deposits be to completely establish the fund at the end of the 10-year period? Annual interest is at 6.2%A project has an initial cost of $7,000. The cash inflows are $1,000, $2,600, $3,200, and $4,000 over the next four years, respectively. What is the payback period?