Rubbermaid Plastic Corp. invested ₱10,000,000 in manufacturing equipment for producing small wastebaskets. If the company uses an interest rate of 5% compounded monthly, how much money should it have to earn each year to recover the investment in 7 years? (a) ₱2,003,600.87 (b) ₱2,530,800.36 (c) ₱1,735,721.38 (d) Over ₱3,000,000

Rubbermaid Plastic Corp. invested ₱10,000,000 in manufacturing equipment for producing small wastebaskets. If the company uses an interest rate of 5% compounded monthly, how much money should it have to earn each year to recover the investment in 7 years? (a) ₱2,003,600.87 (b) ₱2,530,800.36 (c) ₱1,735,721.38 (d) Over ₱3,000,000

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 10P: The D.J. Masson Corporation needs to raise $500,000 for 1 year to supply working capital to a new...

See similar textbooks

Similar questions

Yejen Industries Ltd. invested $10,000,000 in manufacturing equipment for producing small wastebaskets. If the company uses an interest rate of 15% per year, the amount of money it will have to earn each year to recover its investment in 7 years is closest to:a. $2,403,600b. $3,530,800c. $3,941,800d. $4,256,300
Food Corporation of dalican wants money to construct a new granary. If the granary will cost ₱2,000,000 to the company, how much should it set aside each quarter for 5 years if the rate of interest is 10% per year? Using the formula A =F[i/((1+i)n-1)]
Alpha company invested $10,000,000 in manufacturing equipment for producing small wastebaskets. If the company uses an interest rate of 15% per year, the amount of money it will have to earn each year to recover its investment in 7 years is closest to: Select one: a. $6,403,600 b. $4,403,600 c. $2,403,600 d. $9,403,600
A project capitalized for ₱47,000 invested in depreciable assets will earn a uniform, annual income of ₱24523 in 10 years. The cost for operation and maintenance total ₱7,000 a year, and annual taxes and insurance will cost 3% of the investment. The company expects its capital to earn 10% before income taxes.What is the rate of return of the project?
1.-DO IT IN EXCEL, AND SHOW THE FORMULAS If the company purchases factory equipment, its $719,000 cost will be financed with a five-year 18.4% interest loan that requires equal annual payments including principal and interest. The bank charges a 0.75% commission. The equipment will be depreciated with a useful life of 5 years. The company will pay $12,000 per year for maintenance services. The company plans to keep the machine even after its recovery period.What is the total amount paid to the bank? A) 1'160,034.00 B) None of the above C) 719,000.00 D) $938,672.81 (Choose one option)
P1,000,000.00 pesos is needed at the end of each year to maintain each building in Rizal Technological University in Mandaluyong. If money increases at 12% per annum in a investment, how much money need to invest directly so the local government of Mandaluyong can reduce the annual cost by P250,000? *
A construction company borrowed money at 10% per year interest to purchase new heavy equipmentneeded for the company’s various projects. If the company got the loan 2 years ago and paid it offwith a single payment of P25,000,000, what was the principal amount of the loan?
Acme Bricks, a masonry products company, wants to have Php 600 000 on hand before it invests in new conveyors, trucks, and other equipment. If the company sets aside Php 80 000 per year in an account that increases in value at a rate of 15 % per year, how many years will it be before Acme can purchase the equipment? A. 3.2 years B. 4.6 years C. 6.3 years D. 5.4 years
XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made monthly, and at an interest rate of 5% APR. a. What is the total amount of monthly payments? b. What will be the total amount of interest paid on this loan? c. How much of the first monthly payment will be interest and how much of the last monthly payment will be interest?
How much will be the equivalent worth of ₱2M invested today for three years at a commercialrate of 10% compounded quarterly? 1. A manufacturer of toilet flush valves wants to have ₱15,000,000 available 10 years from now so that a new product line can be initiated. If the company plans to deposit money each quarter from now, how much will it have to deposit each year if money is worth 7% compounded quarterly in order to have it available immediately at the end of 10 years?
Charlie Corp. is purchasing new equipment with a cash cost of $100,000 for the assembly line. The manufacturer has offered to accept $22,960 payments at the end of each of the next six years. What is the interest rate that Charlie Corp. will be paying? a. 8%. b. 9%. c. 10%. d. 11%.
What is the capitalized cost of a calendering machine that costs ₱1231,000 upon purchase, requires ₱412,000 for annual operations and maintenance, and an estimated ₱89,000 for parts replacement every 5 years? Interest rate is at 4.5% per year and that the machine is assumed to last for a very long time or forever