Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9%, and payback cutoff is 4 years. What is the payback period? What is the discounted payback period?
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- Bawal Gumamit ng Excel( Don't use Excel) A small company purchased now for 1.15M will lose 75,000 each year for the first 4 years. An additional P400,000 invested in the company during the 4th year will result in a profit of 27,500 from the 5th year through the 15th year. At the end of 15 years, the company can be sold for 1.65M.a. Show the Cash Flow Diagram?Question 7 A man bought a lot worth P1.1M if paid in cash. On the installment basis, he paid a down payment of P200,000, P300,000 at the end of one year, P400,000 at the end of three years, and a final payment at the end of five years. What was the final payment if interest was 16.3%? Express your answer in whole number. Question 7 of 50 A Moving to another question will save this response. acer F10 F11 F12 PrtSc Pause Del Home Pg Up F4 F5 F6 F7 F8 F9 F2 F3 Scr Lk SysRq Break Ins Coca' & %23 -Backspace Nuc Lo 4. € 6. 7 8 E R T Y3. On january 1, 2016, Diana opened an account with a P 50,000 deposit. On january 1, 2017, she withdraws P 25,000 and on january 1, 2019 she deposits P 75,000. If the account earns 7.5% interest, compounded yearly, and no further deposits or withdraws are made, what was the balance on january 1, 2021?
- A certain fund pays 6% interest per quarter. What is the effective rate of interest? 26.25% 7.14% 25.16% 6.14%Q.4 A company is planning to expand its business after 5 years from now. The expected money required for the expansion program is $50 000 000. The company can invest $5 000 000 at the end of every year for the next five years. If the assured rate of return of investment is 10% for the company, check whether the accumulated sum in the account would be sufficient to meet the fund for the expansion program. If not, find the difference in amounts for which the company should make some other arrangement after 5 years?1.You deposit $50,000 into a fund that pays 5% per year compounded annually. You plan to make the following withdrawals. You withdraw $X one year from now, $2X three years from now, and $3X five years from now. If the last withdrawal depletes the fund, what is the value of X?
- Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 12 percent, and that the maximum allowable payback and discounted payback statistics for your company are 2.5 and 3.0 years, respectively. Time: Cash flow: 0 1 2 3 -$227,000 $65,000 $83,200 $140,200 4 $121,200 5 $80,400 Use the payback decision rule to evaluate this project. Note: Round your answer to 2 decimal places. Payback years4. For a deposit of $ 1023 at 7.8% interest compounded continuously over 4 years, find the interest earned? 5. Irish is offered to invest in a business firm that will make her money earn 6% compounded bimonthly. How long will it take for her money to triple?Find the answers of the following: 1. Mr. Reyes borrows P600,000 at 12% compounded annually agreeing to repay the loan in 15 equal annual payments. How much of the original principal is still unpaid after he has made the 8th payment? 2. The purchased price of the equipment is P12,000 and its estimated maintenance costs are P500 for the first year, P1,500 for the second year, and P2,500 for the third year. After three years of use the equipment is replaced, it has no salvage value. Compute the present equivalent cost of the equipment using 10% interest. (capitalized cost) 3. Determine the present worth and the accumulated amount of an annuity consisting of 6 payments of P120,000 each. The payment are made at the beginning of each year and money is worth 15% compounded annually.
- Q2: Being a senior citizen you decide to invest $200,000 say for period 24 months, then describe what is the value you would expect to receive? Deposit rate (recurring deposit) available for various periods is given below.A machine was purchased for $ 8,000, with an estimated useful life of 10 years, and it has a scrap value of $ 1,000 and rate of interest = %1O. Calculate the following: The book value at the end of the ninth year using Sum of the Years- Digits method. * The book value at the end of the fourth year using constant percentage method. * The depreciation installment for the sixth year using straight line method. *Lukas Center acquired a new Laser Machine worth ₱580,000.00. The center plans to pay 35% advance payment and the balance by quarterly payments for 7 years. Money is worth 9% converted quarterly. a. How much is the balance that must be amortized every three months? b. How many quarterly payments must be made to settle the obligation? c. Cost of the quarterly payments?