Answered: plan A plan B plan C Down payment…

plan A plan B plan C Down payment 10,000 8,000 5,761.09 Annual payments 3,076.15 10,077.19 2,396.62 Years 25 25 25 Discount rate 14% 14% 14% What is the present value of plan C?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 40. Calculate the modified duration of a 10-year 79% semi-annual coupon bond priced at 97.50. a.…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: 12- The cash price of a machine tool is $3500.00. The seller is willing to accept a $1000.00 down

A: Effective interest rate is the interest rate adjusted for compounding.

Q: Which of the Note: This is a Multiple Answer question. Please select all of the following options…

A: Conventional Cashflow is a series of cashflows which have only one sign change throughout the…

Q: Determine the value of X that would give the following infinite cash flow series a present worth of…

Q: . A certain manufacturing plant is being sold and was submitted for bidding. Two bids were submitted…

A: Present worth is the idea that expresses a measure of cash today is worth more than that equivalent…

Q: A company plans to buy a new delivery truck for pizza delivery for $30,000 which will generate…

A: Purchase Price = $30000 Revenue per year = $5000 Maintenance every six month after 5th year = $500…

Q: 3. A $800,000 face-value bond matures in four years and pays 6% per year payable quarterly An…

A: Given bond face value = 800000 $ Time = 4 years Interest rate = 6 % payable quarterly Quarterly rate…

Q: Diana usually uses a three-year payback period to determine if a project is acceptable. A recent…

A: Diana was utilizing interior pace of return as a loan cost that is making the present worth to be…

Q: Q-1 C Co., has asked you to recommend a new nutcracker machine. After months of hard re- ch, you…

A: The net present worth (NPV) applies to a progression of incomes happening at various occasions. The…

Q: 9) At the time of retirement, a couple has $200,000 in an account that pays 8.4% compounded monthly.…

A: here we can find the each withdraw by time value formula which are as follow-

Q: A 796 semi-annual coupon bond settles 12/11/15 at 105.00 (clean price). Bond maturity is 12/31/25.…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Two oil wells are for sale. The first will yield payments of $11,400 at the end of each of the next…

A: Present worth (PW) of first oil well can be calculated as follows. Present worth of first oil well…

Q: 11. The face value of a bond is $10,000, and the annual coupon payment is $850. What is the coupon…

A: coupon rate is a rate which is calculated by adding the sum of coupons paid per year and dividing…

Q: At the time of retirement, a couple has $200,000.00 in an account that pays 8.4%compounded monthly.…

A: The formula for payout annuity is given below: P0=d[1-(1+rk)-nk](rk) where, P0 = the account…

Q: Problem 3: A certain manufacturing plant is being sold and was submitted for bidding. Two _bids were…

A: According the question, A certain manufacturing plant is being sold and was submitted for bidding.…

Q: practice exam questions #18 to fund its wars against napolean, the british government sold…

Q: a 100000, 10% bond, pays a dividend every quarter for 8 years. the bond is priced at par and is…

A: Yield to maturity of bond can be calculated by the following formula: YTM = Annual interest payment…

Q: Q2: If the present value of my investment $7000 and the rate of interest 5% what wil the value be in…

A: Present value of investment = $7000 Rate of interest =5% Time =8 years

Q: 1B - Kanish Bhare Topic 13 Homework Close Date: Thu, Nov 18, 2021,08:30 AM Question 2 of 19 A share…

A: In this question we have to find the end-of-quarter dividends.

Q: • Escalation clause: What is it? What type of property uses one? Why would we use it? How would it…

Q: 21. If the first one offers to lend him #10,000 payable after one year, how much money will he pay…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: On your 23rd birthday you decide to invest $4,500 (10% of your annual salary) in a mutual fund…

A: Mutual fund: A common asset is an organization that pools cash from numerous financial specialists…

Q: Answer incorrect on August 1, 2012, the price of Walmart stock was $70.88; on March 1, 2013, it was…

A: Given that, Price in August 1, 2012 = $70.88 And Price in March 1, 2013 = $73.93

Q: Question 3.10 A company needs a helicopter for the next 8 years. The estimates on two types of…

A: GIVEN INFORMATION: Model A: Initial cost = $90,000 Annual maintenance cost = $5,000 Salvage Value =…

Q: You can afford a $900 per month mortgage payment. You've found a 30 year loan at 6.5% interest. a)…

A: Given Monthly mortgage payment A = $900 Time t= 30 years Rate of interest =6.5% compounded…

Q: A company is considering replacing an old piece of industrial equipment toreduce operating and…

Q: 11- A project requires an initial cost of $15432.00. It results in savings that start at $2000.00 at…

A: Over a given period, an investment's return on investment (RoR) is calculated as a percentage of the…

Q: A 10,000 Par Disney bond has a 4% coupon and will mature in 10 years. If its yielding (YTM) 5%…

A: Yield to Maturity: The yield to maturity (YTM) is the expected annual rate of return for a bond…

Q: - A couple has a $475,000 mortgage amortized over 30 years with monthly payments. They chose to lock…

A: Given: Mortgage amount = 475000 Time period = 30 years Interest rate first 4 years= 4% Simple…

Q: 7. Morocco University has just finished a new agriculture complex worth $50 million. Future…

A: A capitalized price is Associate in Nursing expense supplementary to the price basis of a set…

Q: plan A plan B plan C Down payment 10,000.00 8,000.00 5,238.23 Annual payments 3,549.24 10,056.47…

A: Present Value = $D+$z(1+i)+$z(1+i)2+$z(1+i)3+..........................+$z(1+i)n-1 where, D…

Q: Nu Things, Inc., is considering investing in a business venture with the following anticipated cash…

A: given that, the initial cost is -$70000 revenue in 1st year is $20,000 which is decreasing by $1000…

Q: 7 PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM. An investment will pay $150 at the end of ach of…

A: A payment at the end of every year can also be counted as a payment at the beginning of the next…

Q: NPBT $100,000: NPAT $70,000: Interest Expense $10,000: Income Tax $30,000: Sales $950,000. Calculate…

A: Given: Net profit before tax(NPBT)=$100,000 Net profit after tax (NPAT)= $70000 Interest expense=…

Q: 1.) Global Investment Corporation is exploring multiple investment opportunities to invest about $10…

A: An investment is an asset or item acquired with the goal of generating income or appreciation. Here,…

Q: $51.19 The balance on Ramon Felipe's credit card on January 12, his billing date, was $323.67. For…

A: Period No. of Days Balance No. of Days × Balance Jan 12 - Jan 17 6 323.67 1942.02 Jan 18 - Jan…

Q: A company has an investment project that would cost $10 million today and yield a payoff of $15…

A: The breakeven interest rate is the maximum rate of interest a firm can make the payments from the…

Q: 31. (Table: Present Value of Projects A, B, C, and D) Examine the table Present Value of Projects…

A: This is a Finance question and should have been posted under Finance and not Economics. Please make…

Q: Problem 3: A certain manufacturing plant is being sold and was submitted for bidding. Two bids were…

A: In economics, present value refers to the current value of a future stream of cash flow. Future…

Q: First annual income is $ 150.000 of an hotel whose sales price was $ 2.250.000. Its yearly income…

A: A financial calculation that assesses the worth of an amount of money or stream of payments that…

Q: 6 The Annualized Worth of a Series 0. It has interest rate i-6% and planning horizon is 30. if the…

A: Annual worth: It refers to the sum of worth taken annually on the basis of income and receipts. If…

Q: Complete the following receipt (in $). Stock # Quantity Unit Description Unit Price Total 424 13 ea.…

A: We are going to calculate the basket value, to find the invoice total, to answer this question.

Q: (1) three year ago , meghan bought stock in GE for $25.69 per share . the stock is now worth $145.85…

A: The compound annual growth rate (or CAGR in short) tells us about the rate of return offered by an…

Q: ears. You estimate you need $6,000,000 to retire nd live comfortably. Assume time zero is today nd…

A: Nominal interest rate refers to the interest rate before taking inflation into account. Here, we…

Question

plan A
plan B
plan C
Down payment
10,000
8,000
5,761.09
Annual payments
3,076.15
10,077.19
2,396.62
Years
25
25
25
Discount rate
14%
14%
14%
What is the present value of plan C?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Using Table 11-1, compute the amount of compound interest (in $) earned in 1 year and the annual percentage yield (APY) for the investment. (Round your answers to two decimal places.) Principal NominalRate (%) InterestCompounded Compound InterestEarned in 1 Year Annual PercentageYield (APY) $33,000 12 monthly $ %
1.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000 d)$20000 2.The simple interest on a $6500 loan at 15% for 9 months is. a)$731.25 b)$7312.50 c)$73.13 d)$2925 3. If we deposit $5000 in an account that pays 9% per year. Find the amount of simple interest earned during 8 months. a)$3000 b)$300 c)$360 d)$3600 4.The simple interest charged on a loan amount of $8500 for 2 years was $1275. What rate of interest was charged a)22.5% b)3.75% c)15% d)7.5% 5.What rate of simple interest will make a principal double itself in 6 years. a)16.67% b)8.33% c)33.33% d)4.16% 6.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000 d)$20000
14 Calculate the term of each annuity: Future Value Present Value Size of Payment a. $0 $8,500 $675 b. $23,500 $0 $491.25 c. $0 $962 $100 d. $85,000 $0 $2,500 Interest Rate 10.75% 8.25% 10.00% 13.00% Payment and Conversion Period 3 months 1 month 1 week 6 months Term (N) ? ? ? ?
While in college, Jerry received $40,000 in student loans at 8% interest. She will graduate in December and is expected to begin repaying loans in 5 equal annual payments. Compute her yearly payments. Select one: a. 30785.52 b. 83395.81 c. 250000 d. 88395.81 e. 10018.28
Co Question 16 What type of annuity is represented by the graph below? P 1 2 3 k-1 k A, A, A3 Ak-1 AK A perpetuity deferred annuity C annuity due D ordinary annuity E uniform gradient annuity Question 17 Pri
A child is promised to be given by his mother Ᵽ 5000.00 7.5 years from today. The interest rate is 7.25%. What is the present value of the amount? What is the present value of a 15 year investment amounting to Ᵽ 45,670 if the prevailing interest is 2.5%? Based on Item No. 2 compute for the present value of Ᵽ 45,670 in 20, 22 and 25 years if the interest rates are 5.5%, 6.8% and 9.80% respectively.
Engineering Economics If money is worth 8%, determine the present value of a perpetuity of P1,000 payable annually, with the first payment due at the end of 5 years. a. P9, 187. 87 b. P9, 272.64 c. P9, 178. 87 d. P9, 272. 46
4:09 470 3 of 3 Assignment 2-2022.pdf 420 ct the cash flow diagram for A mechanical device will cost $20,000 when purchased. Maintenance will cost $1000 per year. The device will generate revenues of $5000 per year for 5 years. The salvage value is $7000. 8. Each year Exxon-Mobil expends large amounts of funds for mechanical safety features throughout its worldwide operations. Carla Ramos, a lead engineer for Mexico and Central American operations, plans expenditures of $1 million now and each of the 2 next 4 years just for the improvement of field-based pressure- release valves. Construct the cash flow diagram and find the equivalent value of these expenditures at the end of year 4, using a cost of capital estimate for safety-related funds of 12% per year. 9. An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 $2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of A2 =…
1. Compute the net present value (NPV) of the following cash flows: End of Year Cash Flow, $1000 a. NPV = -2,633.99 The interest rate is 15% per year, compounded annually. b. NPV = = 2,633.99 0 C. NPV = 1,617.99 -6 1 4 2 2 3 -3 -2 5 3
You deposit a sum d in a bank account in year zero. The rate of interest on deposits is r, and interest is paid annually. If you allow the interest to compound, how much will you have in the account after n years? a. d (1+n)" Ob.d (1+r)" oc. dr C. Od.d+d_rn 0 0
allie has won a lottery that pays her $135,000 at the end of this year and increases by 11.25% per year thereafter for 26 years. leon has offered allie $ 2,500,000 today in exchange for all the money she will receive. if gail can get 13% per year compounded every 6 months. a. determine the present worth of the lottery winnings. b. does leon offer a good deal? (yes/no) c. what is the future worth of the better deal?
Green and Gold Industries sells 3 products. The sales are expected to increase every year as shown over the next 5 years. For the rate of interest given, what is the FV of the total sales revenue? Product A Product B Product C Rate 1st years sales $200,000 $150,000 $50,000 6% Increases per yr 5% 10% $15,000 A. $2.7 Million B. $220,500 C. $2.3 Million D. $243,101