Question
1) On January 1, 20x2, Solari company plan to invest cash outlay of Php40,000 that will earn Php70,000 after 8 years. The prevailing annual interest
1) On January 1, 20x2, Solari company plan to invest cash outlay of Php40,000 that will earn Php70,000 after 8 years. The prevailing annual interest rate for this kind of investment is 12%. What is the intrinsic value of the cash inflow of the investment? (Round your factor in 3 decimal places)
a. Php40,000
b. Php70,000
c. Php173,320
d. Php28,280
2) On January 1, 20x2, Zaun company has an opportunity to invest in an investment that need a cash outlay of Php3,000 every year starting January 1, 20x3 for 10 years. The prevailing interest rate for this kind of investment is 12% semi-annually. How much is the value of the investment on the end of 10 years? (Round your factor in 3 decimal places)
a. Php34,410
b. Php16,950
c. Php52,647
d. Php110,358
3) On January 1, 20x2, Piltover company has an opportunity to invest in an investment that need a cash outlay of Php50,000 on the same day and will earn Php8,000 starting January 1, 20x3 for 8 years. The prevailing interest rate for this kind of investment is 10% annually. What is the net present value of the investment? (Round your factor in 3 decimal places)
a. Php42,680
b. Php46,944
c. Php3,056
d. Php7,320
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started