We sometimes need to find how long it will take a sum of money (or anything else) to grow to some specified amount. For example, if a company's sales are growing at a rate of 20 percent per year, how long will it take sales to double?
Q: 2. ABC Corporation plans to set aside $50,000 per year beginning 1 year from now for replacing…
A: Annual amount (P) = $50,000 Interest rate (r) = 10% Inflation rate (i) = 4% Period (t) = 6 Years
Q: 1. A company will have to spend $300000 on new plant in two years from now. Currently investment…
A: Present Value = $300,000 Time Period = 2 Years Interest Rate = 10%
Q: If a company's sales are growing at a rate of 20% annually, how long will it takes sales to double?
A: Future Value = Present Value * (1+r)^n let PV =1, than FV be 2
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A: Cost Analysis is based on Time value of money. This means a dollar today is worth more than a dollar…
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A: Bonus % = 1.25% Sales in year 1 = 350,320 Sales in year 2 = 362,320 Annual Increase in sales/bonus =…
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A: Internal rate of return(IRR) is one of the techniques of capital budgeting that take into…
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A: Value of investments after 10 years=$50,000Rate of return(r)=8%Time(n)=10 years
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A: Contribution Margin: It is defined as the difference between the sales and the variable cost.…
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A: If present value of future value is more than initial investment than investment is accepted.
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A: Effective annual rate = ert - 1 Where, Effective annual rate = 25% e = exponential function r =…
Q: Annual revenues in our company are $1.5 million this year. If they are expected to grow at a…
A: Future Value = Present Value * (1+rate)^years
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A: Money demand function is as…
Q: How much money can a company spend now instead of spending $10,000 in year 3, $20,000 in year 4, and…
A: 3 year future value = $10,000 4 year future value = $20,000 5 year future value = $30,000 Interest…
Q: if a company's sales are growing at a rate of 10% annually, how long will i take sales to double
A: The above information indicates that sales of the company are growing and the approximate year it…
Q: If sales increase from R80 000 per year to R120 000 per year, and if the operating leverage is 5,…
A: Net Income is defined as the total amount of the funds, which is earned by the business in the…
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A: The capital budgeting is a technique that is used to evaluate the profitability of the project and…
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A: Given: Investment =$15000Annual return =$5000Inflation rate =30%
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A: In this we have to calculate the present value of all cash flow.
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A: option B: If a firm has a large % of accounts over 30 days old it is a sign that the firms…
Q: ppose California’s population is 36.5 million people and its population is expected to grow by 2%…
A: The given problem can be solved using NPER function in excel. NPER function computes no. of periods…
Q: A retail coffee company is planning to open new coffee 95 outlets that are expected to generate…
A: Solution:- Net Present Value (NPV) means the net value in today’s terms after adjusting initial…
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A: current savings of 3 years = $38.2 millions target of amount need to save = $112 - $38.2 = $73.8…
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A: Cost of goods sold = Sales x 60% = $10000 x 60% = $6,000
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A: The sales of the company is increasing at a high growth rate of 25%, this means the company will…
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A: Given Information, Initial Cost =100,000 Cash Inflow = 30,000 Annually Time Period =5 years…
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A: Expected level of sales can be calculated as the sum of product of probability of respective…
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A: Data given: annual cash flow is projected =$74 × 6,000 = $444,000. Discount rate = 18 %, Initial…
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A: The rate of return on an investment is the ratio of profits earned on an investment made by the…
Q: We sometimes need to find how long it will take a sum of money (or anything else) to grow to some…
A: Given: Annual sales growth rate =20% Now, let present sales value = 100 Future sales value = Twice…
Q: A company forecasts free cash flow in one year (i.e. FCF1) to be -$10 million and free cash flow in…
A: cash flow in 1 year=$10 million cash flow in 2 years=$20 million rate=4% W.A.C.C=14% Current value=?
Q: Time Value of Money What is the rate of return on a security that costs $1,000 and returns $2,000…
A: Since you have asked multiple questions, we will solve the first question for you. Please ask…
Q: assume that $1 one year from now is worth $0.90 today, and $1 two years from now is worth $0.75…
A: Present value is the concept that states an amount of money today is worth more than that same…
Q: How do I work this problem in excel? What will $82,000 grow to be in 11 years if it is invested…
A: Future value formula will be used. where, Rate = 0.67% Nper = 132 periods PV = $82,000
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A: To compute the intrinsic value per share, total value of firm is determined by determining the total…
Q: 1. Your company has developed the next great innovation in thermocouple technology. They are very…
A: Equivalent annual value = r * NPV / 1 - (1+r)^(-n) where r = interest rate NPV = net present value…
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A: The present value is arrived at by discounting the future cash flow using the interest rate. This is…
Q: . We sometimes need to find out how long it will take a sum of money (or anything else) to grow to…
A: Future value can be determined by present value and interest rate and period.we can determine period…
Q: If a company's sales are growing at a rate of 20% annually, how long will it take sales to double?
A: Present Value refers to the value of cash flows today which is to be received at some future time…
Q: A firm is considering a new inventory system that will cost $120,000. The system is expected to…
A: Capital Budgeting Techniques helps to determine which investment alternative should be undertaken.…
Q: At what rate would $1,700 have to be invested to grow to $20,692.71 in 29 years?
A: Details given are : Present value = $1700 Future value = $20692.71 Time period = 29 years We require…
Q: Please use excel and explain how you solved it step by step thank you How much income should an…
A: Here we will first of all have to compute the future value of the investment and then determine the…
Q: You are considering an investment product that is expected to generate an annual cash flow of $2,000…
A: Annual cashflow (A) = $2000 starting after 3 years Cost of investment in year 0 (C0) = $10000 C1 =…
Q: 3. Suppose your company expects to increase unit sales of widgets by 15% per year for the next 5…
A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…
c. We sometimes need to find how long it will take a sum of money (or anything else) to grow to some specified amount. For example, if a company's sales are growing at a rate of 20 percent per year, how long will it take sales to double? |
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- We sometimes need to find how long it will take a sum of money (or anything else) to grow to some specified amount. For example, if a company's sales are growing at a rate of 20% per year, how long will it take sales to double?3. We sometimes need to find out how long it will take a sum of money (or anything else) to grow to some specified amount. For example, if a company's sales for 2020 is $1000 and expected to grow at a rate of 10% per year, how long will it take sales to double?Finally, assume that the new product line isexpected to decrease sales of the firm’s otherlines by $50,000 per year. Should this be considered in the analysis? If so, how?
- Answer the following lettered questions on the basis of the information in this table: Amount of R&D, $ Millions Expected Rate of Return on R&D, % $ 10 16 20 14 30 12 40 10 50 8 60 6 Instructions: Enter your answer as a whole number. a. If the interest-rate cost of funds is 8 percent, what is this firm's optimal amount of R&D spending? million %24The revenue from a manufacturing process (in millions of dollars per year) is projected to follow the model R=130 for 10 years. Over the same period of time, the cost (in millions of dollars per year) is projected to follow the model C-50+ 0.22, where t is the time (in years). Approximate the profit over the 10-year period. (Round your answer to two decimal places.) $ million Need Help? PIn this exercise, we develop a model for the growth rate G, in thousands of dollars per year, in sales of a product as a function of the sales level s, in thousands of dollars.† The model assumes that there is a limit to the total amount of sales that can be attained. In this situation, we use the term unattained sales for the difference between this limit and the current sales level. For example, if we expect sales to grow to 4 thousand dollars in the long run, then 4 − s gives the unattained sales. The model states that the growth rate G is proportional to the product of the sales level s and the unattained sales. Assume that the constant of proportionality is 0.8 and that the sales grow to 2 thousand dollars in the long run. (a) Find a formula for unattained sales.(b) Write an equation that shows the proportionality relation for G.G =
- Suppose Naboo Manufacturing's sales increase 20% over the next year. Assuming that all asset accounts change proportionately to sales, what is the external financing needed?1 Solve the following rate of return problems. a. An investment of $1,700 today returns $64,000 in 50 years. What is the internal rate of return on this investment? b. An investment costs $850,000 today and promises a single payment of $12.9 million in 22 years. What is the promised rate of return, IRR, on this investment? c. What return do you earn if you pay $24,410 for a stream of $4,000 payments lasting 10 years? Note: Round your answers to 2 decimal places. a. IRR b. IRR c. IRR 7.53 % %1. Your company has developed the next great innovation in thermocouple technology. They are very excited, and the accounting department is predicting the first year's sales will be $25 million. You anticipate sales will increase each year by 15%, and you use a planning horizon of 7 years. a) If your company uses an 8% interest rate, what will the equivalent annual value of the sales be? b) What will the sales be in year 5?
- Part a. write a function F(t)= that describes the value after t years of a $2000 investment that increases by 9% per year Part b. For your function in part a about find the value of the investment after 10 years Part C. For the function in part a, solve to find how long it would take to double your original investment. Try to solve the equation without using a graph or table. What problem do you encounter?A company wants to invest $619,932 today. The expected returns in years 1, 2, and 3 are $244,539, $175,421, and $341,884, respectively. If the rate of return on investment must be at least 15%, and the probability of commercial and technical success are 0.89 and 0.86, respectively. What is the maximum expenditure justified that the company may spend?assume that $1 one year from now is worth $0.90 today, and $1 two years from now is worth $0.75 today. Dollars can be bought and sold at these prices. There are no transaction costs.A firm anticipates that it will have a surplus of dollars one year from now but a shortage two years from now. The present value of the surplus of dollars that is forecast for one year from now is $2,000. What is the amount of the surplus in terms of dollars available in one year?