Q1): A company is planning to expand its business after 5 years from now. TheexpectedThe companyrequiredmoneycan invest $ 500,000 at the end of every year for the nextfortheexpansionprogrammed2$5,000,000.five years.If the assuredrateofof investment is18%for thereturncheckwhethertheaccumulatedinthewouldbecompany,sufficient to meet the fund for the expansion programmed.sumасcountIf not, find thedifference in amounts for which thecompany should makesome otherarrangement after 5 years.

Here we calculate the difference in amounts company arrange after 5 year by using the given…

Q1): A company is planning to expand its business after 5 years from now. The expected The company can invest $ 500,000 at the end of every year for the next five years. If the assured rate of return of investment is company, check sufficient to meet the fund for the expansion programmed. If difference in amounts for which the company should make some money required for the expansion programmed $ 5,000,000. 18% for the whether the accumulated sum in the асcount would be not, find the other

Q1): A company is planning to expand its business after 5 years from now. The expected The company can invest $ 500,000 at the end of every year for the next five years. If the assured rate of return of investment is company, check sufficient to meet the fund for the expansion programmed. If difference in amounts for which the company should make some money required for the expansion programmed $ 5,000,000. 18% for the whether the accumulated sum in the асcount would be not, find the other

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Phyllis invested 50000 dollars, a portion earning a simple interest rate of 4 percent per year and the rest earning a rate of 7 percent per year. After one year the total interest earned on these investments was 2900 dollars. How much money did she invest at each rate? At rate 4 percent : At rate 7 percent :
12:42 Expert Q&A Done e bond wi e wth S en and dd 1 y Howuh wod an be wilngt pay r ths bonda5 pr yr y d con te e the intrt and annly to d compunding when p yea The urnt worh ofhend oundt the ) Azero coupon bond will be worth $15,000 when it matures and is redeemed after 13 years. How much would an investor be willing to pay now for this bond if a 3% per year yield is desired? Click the icon to view the Interest and annuity table for discrete compounding when = 3% per year. The current worth of the bond is (Round to the nearest dollar)
John plans to invest an equal amount of $2.000 in equity fund every year-end beginning with this year. The expected annual rate of return is 15%. She plans to invest for 20 years. The expected annual rate of return is 15%. She plans to invest in 20 years. How much could she expect to have at the end of 20 years?
ou decided to go and apply for a credit card at your local financial institution.The Prime rate currently announced on June 1 was 3.25%. You have goodcredit history and a FICO score of 700. The lowest rate that they can offer toindividuals is a 18.99% APR for a credit card that gives cashback on purchasesand rewards. You were offered 21.99% APR for the credit card. How did thelender determine or calculate what rate they should offer you?
QUESTION 2 1. You need $30,000 to buy a new Air-Con for your house in 4 years. What value you must have now if the compounded annually return is 10%. 2. Your father placed $50,000 in a trust fund for you. In 12 years what will be the worth of the savings. If the estimated rate of return on the trust fund is 7%?
Suppose you purchased a corporate bond with a 10-year maturity. a $1,000par value, a 10% coupon rate, and semiannual interest payments. What all this means that you receive $50 interest payment at the end of each six-month period for 10 years (20 times). Then, when the bond matures, you will receive the principal amount (the face value) in a lump sum. Three years after the bonds were purchased, the going rate of interest (coupon rate) on new bonds fell to 6% (or 6% compounded semiannually). What is the current market value (P) of the bond (3 years after the purchase)?
N 1. You need $3,000 to buy a new stereo for your car in 3 years. What value you must have now if the compounded annually return is 10%. 2. Your grandfather placed $5,000 in a trust fund for you. In 12 years what will be the worth of the savings. If the estimated rate of return on the trust fund is 8%?+
True or False 1. For any economy study based on our discussions, it is always necessary to determine the profit to evaluate thebetter/best alternative.2. If simple interest is evaluated, then the interest obtained will always be directly proportional to the number of years assuming that a constant interest rate is used throughout these years.
1. If you borrow money from your friend with simple interest of 12%. Find the present worth of 20,000 which is due at the end of nine months? 2. A Loan of 10,000 is made for a period of (m) months at simple interest of 20%. If the future amount is due at the end of the load period is 4,166. Determine the (m) ? 3. The investmest made by John proved most remunerative. His 1,000,000 savings doubled at 2% per 6 months after (n) years. Determine the (n) ? 4. An investors holds a time payment purchase contact on some machine tools. The contact calls for the payments of 6,800 at the end of each month a 5 years period. The 1st payment is due in one month. He offers to sell you the contact for 330,680 cash today. If you otherwise can make 1% per month on your money, would you accept or reject the investors office?
A zero-coupon bond has a yield to maturity of 5% and a par value of $1,000. If the bond matures in16 years, it should sell for a price of __________ today.
You are paying into a mutual fund that earns7% compound interest. If you are making an annualcontribution of $14,000, how much will be in thefunds in 25 years?
2. Switching to powder coating technology will reduce the emission of volatile organic carbons (VOCs) for a firm's production process. The initial cost is $300,000 with annual costs of $35,000 and savings of $80,000 per year. The salvage value 10 years from now is projected to be $75,000. What rate of return will the firm make on this investment? Round your answer to the nearest .01 percent.