1-2) Khalid borrowed SR 15,000 at 5% and his payments are scheduled as follows: 5 CF 0 4X FOY 4 1) Calculate the value of that the loan is fully repaid. d. SR 1.821.07 a. SR 3483.79 b. SR 2.0346 C. SR 1.8904 2) Assume the payments will be a uniform series from 12.51 a. SR 4,588.60 b. SR 4441.69 CSR 5.340,07 d. SR 4,891.1 3) How long does it take approximately for money to double in value if you earn 5% a & Years and 7 months b9 years. c. 14 years and 3 months d. 22 years and 6 months 4) For the below cash flow, the correct notation to find the present worth at 10% interest rate is: 4 year CF (SR) 1 5000 2 4000 3 3000 5 1000 6 2000 a. 5000 (P/A 10%, 6) - 1000 (PAG 10%, 6) b. 5000 (P/A 1996. 5) +2000 (P/A 10%, 5) - 1000 (PIG 10%, 5) c. 5000 (PIA 10%, 6)-1000 (P/A 10%, 6) +2000 (PF106.6 d. 5000 (P/A 109, 5) 1000 PG 10%.5) +2000 (PF 10%,6) 5) The correct notation to be used for finding the present value of SR 100 at the 15th year at 8% interest rate is: a. 100 (PF 8%, 10)+100 (PF8%, 5) b. 100 (PF 8%, 10) (FIP 895) c. 100 (PIF896, 5) (PF 8%, 5)(PF8%, 5) d. 100 (PF 8%, 5)(A/F8%,5) (PF8%, 5) 6-8) You have the following cash flow, determine the following: (Assumei -8%) 1 2 5 CF (SR) 2000 3000 6000 2000 4000 6) Determine the present worth equivalent of the above cash flow b. SR 16,618.16 b. SR 18.39467 CSR 15.572.32 d. none of the above 7) Determine the future worth equivalent of the above cash flow a SR 32.3588 b. SR 27.387.3 CSR 26.370.8 Determine the annunch comitather.cash Box d. None of the above 8) Determine the annual worth equivalent of the above cash flow a. SR 2.520.2 b. SR 3.594.84 C. SR 3,575.56 d. none of the above 9) What future worth is equivalent to the following cash flow profile if i=10%? $500 $400 $300 $200 $100 0 1 2 3 4 5 6 a. S1.520.12 b. $1,947.45 c) S1,320.67 d) $2,120.2 10) A person borrowed a SR 10,000 at TVOM of 10%. He is required to repay the debt with 5 annual payments of SR 2,638. At EOY 3, he borrowed another SR 2,000 that he will repay with two payments of SR 1,152. Select the CF that represent the above situation. 11) Considering the below cash flow diagram at 10% interest rate compounded annually, what time is needed for this investment? 1300 1 800 a. 4.28 b.5.09 c. 347 d. 6.30 12) If someone offers you the choice of receiving S1000 today versus receiving S1300 a year from today, we should take the money today only if your time value of money is a. 106 b. 33% c.22% d. 15% Questions 13-15: A company is considering four proposals (1, 2, 3, and 4). The following constraints were set before making a decision: 1 and 2 are mutually exclusive. 4 is contingent on 3. At least two should be selected. No more than 3 can be chosen 13) How many alternatives are available? b. 16 c. 14 d. 12 14) How many feasible alternatives are available? b.5 c. 3 d. 6 15) Which of the following set of investment is not feasible? a. (1,3,4) b. {1,3) c. {2,3,47 d. {1,2,43 16) Three production machines are considered on a project, and the useful life for equipment (A) is 2 years, useful life for equipment (B) is 4 years, and the useful life for equipment (C) is 6 years. Based on the least multiple common of lives, the planning horizon should be: B) 60 years. C) 12 years. D) 30 years. E) 20 years. 17) Suppose we have three alternatives, and the least common multiple of lives equal to 12 years and MARR=12%. If the annual worth for a life cycles is equal to $50,000 for alternative A. what will be the present worth over a least common multiple of lives. A) $340,684 B) S282,511 C) $309,718 D) More information is needed to calculate the present worth. 18) Four investment alternatives (A, B, C, and D) are being considered by a firm. There are five factors used to compare between the proposals as shown in the following table. B D 5.6 Factors Weight F1 20 F2 20 F3 20 7 8 6 8 7 8 Rating 8 10 7 7 6 6 F4 FS 20 20 7 10 6 7 7 10 Which of the alternative is better using Weighted Factor Comparison? a. A b. B c. d. D 19) Determine the equivalence uniform serious over (1,5) for the below cash flow at 1-8%: 4 6 year CF (SR) 2 2000 5 0 0 2000 2000 500 a. (2000 (P/A 8%, 3) + 500 (P/F 8%, 5)) (A/P 8%, 5) b. (2000 (P/A 8%, 3) +500 (P/F 8%, 6)) (A/P 8%, 5) C. (2000 (P/A8%, 3) (P/F 8%, 1) +500 (P/F 8%, 6)) (AP 8%, 5) d. (2000 (PIA 8%, 3) (P/F 8%, 2)+500 (P/F 8%, 6) (A/P 8%, 5) 20) Consider the following cash flow series. At 8 % per year compounded annually, Calculate the present worth of the below cash flow series? 5 CF (SR) -10,000 6,500 5,500 5,000 4,500 4,000 3,500 3,000 year 0 1 6,000 a. 22.452.8 b. 18,450.11 c. 31,613.3 d. Cannot be measured 21) Consider a cash flow and interest profile as shown below: year 0 CF at EOY (SR) -5,000 7.500 Interest rate (%) 6 2 3,000 8 3 4,500 10 The formula to be used for finding the equivalent annual worth for the above cash flow from the present worth is: a. A(P/F 6%, 1)+A(F/P 8%, 1)(P/F 6%, 1)+A(F/P 10%, 1)(F/P 8%, 1)(P/F 6%, 1) b. A(A/P 6%, D){1+A/P 8%, 1)H(A/P 8%, 1)(A/P 10%, 1); c. A(A/F 6%, 1)+A(A/P 8%, 1)(A/F 6%, 1)+A(A/P 10%, 1/A/P 8%, IMA:F 6%, 1) d. A(P/F 6%, 1){1+(P/F 8%,1)+(P/F 8%, 1)(P/F 10%, 1); 21-23) A SR100,000 is invested into a fund pays an interest of 12.12%/year quarter in order to make 36 monthly withdrawals. Each withdrawal decreased by 2% from the previous one and the first withdrawal will be made 2 months after the investment. Determine the following: 22) The interest rate that should be used to solve this problem. a. 5% b.3% c.1% d. 12% 23) Assume the answer of the previous question is 5% compounded monthly, determine the size of the first withdrawal: a. SR 4,401 b. SR 2,205 c. SR8,019 d. SR 6,321 24) Assume the first withdrawal is SR 5000, what is the size of the 8th withdrawal b. SR 3,491.69 d. SR 5,231.22 a. SR 4,340.63 c. SR 4.253.81 25) Determine the present worth of the following cash flow at an interest rate of 15% compounded continuously: 4 year CF (SR) 1 2000 2 2000 5 4000 2000 2000 a. SR 10.112.1 b. SR 7,653.4 c. SR 4,677.44 d. SR 7.465.4 BONUS) Determine the value of X that makes the below two cash flow diagrams equivalent at -10%: AS6500 She SHOCK S500ax $5000 1-2) Khalid borrowed SR 15,000 at 5% and his payments are scheduled as follows: 5 CF 0 4X FOY 4 1) Calculate the value of that the loan is fully repaid. d. SR 1.821.07 a. SR 3483.79 b. SR 2.0346 C. SR 1.8904 2) Assume the payments will be a uniform series from 12.51 a. SR 4,588.60 b. SR 4441.69 CSR 5.340,07 d. SR 4,891.1 3) How long does it take approximately for money to double in value if you earn 5% a & Years and 7 months b9 years. c. 14 years and 3 months d. 22 years and 6 months 4) For the below cash flow, the correct notation to find the present worth at 10% interest rate is: 4 year CF (SR) 1 5000 2 4000 3 3000 5 1000 6 2000 a. 5000 (P/A 10%, 6) - 1000 (PAG 10%, 6) b. 5000 (P/A 1996. 5) +2000 (P/A 10%, 5) - 1000 (PIG 10%, 5) c. 5000 (PIA 10%, 6)-1000 (P/A 10%, 6) +2000 (PF106.6 d. 5000 (P/A 109, 5) 1000 PG 10%.5) +2000 (PF 10%,6) 5) The correct notation to be used for finding the present value of SR 100 at the 15th year at 8% interest rate is: a. 100 (PF 8%, 10)+100 (PF8%, 5) b. 100 (PF 8%, 10) (FIP 895) c. 100 (PIF896, 5) (PF 8%, 5)(PF8%, 5) d. 100 (PF 8%, 5)(A/F8%,5) (PF8%, 5) 6-8) You have the following cash flow, determine the following: (Assumei -8%) 1 2 5 CF (SR) 2000 3000 6000 2000 4000 6) Determine the present worth equivalent of the above cash flow b. SR 16,618.16 b. SR 18.39467 CSR 15.572.32 d. none of the above 7) Determine the future worth equivalent of the above cash flow a SR 32.3588 b. SR 27.387.3 CSR 26.370.8 Determine the annunch comitather.cash Box d. None of the above 8) Determine the annual worth equivalent of the above cash flow a. SR 2.520.2 b. SR 3.594.84 C. SR 3,575.56 d. none of the above 9) What future worth is equivalent to the following cash flow profile if i=10%? $500 $400 $300 $200 $100 0 1 2 3 4 5 6 a. S1.520.12 b. $1,947.45 c) S1,320.67 d) $2,120.2 10) A person borrowed a SR 10,000 at TVOM of 10%. He is required to repay the debt with 5 annual payments of SR 2,638. At EOY 3, he borrowed another SR 2,000 that he will repay with two payments of SR 1,152. Select the CF that represent the above situation. 11) Considering the below cash flow diagram at 10% interest rate compounded annually, what time is needed for this investment? 1300 1 800 a. 4.28 b.5.09 c. 347 d. 6.30 12) If someone offers you the choice of receiving S1000 today versus receiving S1300 a year from today, we should take the money today only if your time value of money is a. 106 b. 33% c.22% d. 15% Questions 13-15: A company is considering four proposals (1, 2, 3, and 4). The following constraints were set before making a decision: 1 and 2 are mutually exclusive. 4 is contingent on 3. At least two should be selected. No more than 3 can be chosen 13) How many alternatives are available? b. 16 c. 14 d. 12 14) How many feasible alternatives are available? b.5 c. 3 d. 6 15) Which of the following set of investment is not feasible? a. (1,3,4) b. {1,3) c. {2,3,47 d. {1,2,43 16) Three production machines are considered on a project, and the useful life for equipment (A) is 2 years, useful life for equipment (B) is 4 years, and the useful life for equipment (C) is 6 years. Based on the least multiple common of lives, the planning horizon should be: B) 60 years. C) 12 years. D) 30 years. E) 20 years. 17) Suppose we have three alternatives, and the least common multiple of lives equal to 12 years and MARR=12%. If the annual worth for a life cycles is equal to $50,000 for alternative A. what will be the present worth over a least common multiple of lives. A) $340,684 B) S282,511 C) $309,718 D) More information is needed to calculate the present worth. 18) Four investment alternatives (A, B, C, and D) are being considered by a firm. There are five factors used to compare between the proposals as shown in the following table. B D 5.6 Factors Weight F1 20 F2 20 F3 20 7 8 6 8 7 8 Rating 8 10 7 7 6 6 F4 FS 20 20 7 10 6 7 7 10 Which of the alternative is better using Weighted Factor Comparison? a. A b. B c. d. D 19) Determine the equivalence uniform serious over (1,5) for the below cash flow at 1-8%: 4 6 year CF (SR) 2 2000 5 0 0 2000 2000 500 a. (2000 (P/A 8%, 3) + 500 (P/F 8%, 5)) (A/P 8%, 5) b. (2000 (P/A 8%, 3) +500 (P/F 8%, 6)) (A/P 8%, 5) C. (2000 (P/A8%, 3) (P/F 8%, 1) +500 (P/F 8%, 6)) (AP 8%, 5) d. (2000 (PIA 8%, 3) (P/F 8%, 2)+500 (P/F 8%, 6) (A/P 8%, 5) 20) Consider the following cash flow series. At 8 % per year compounded annually, Calculate the present worth of the below cash flow series? 5 CF (SR) -10,000 6,500 5,500 5,000 4,500 4,000 3,500 3,000 year 0 1 6,000 a. 22.452.8 b. 18,450.11 c. 31,613.3 d. Cannot be measured 21) Consider a cash flow and interest profile as shown below: year 0 CF at EOY (SR) -5,000 7.500 Interest rate (%) 6 2 3,000 8 3 4,500 10 The formula to be used for finding the equivalent annual worth for the above cash flow from the present worth is: a. A(P/F 6%, 1)+A(F/P 8%, 1)(P/F 6%, 1)+A(F/P 10%, 1)(F/P 8%, 1)(P/F 6%, 1) b. A(A/P 6%, D){1+A/P 8%, 1)H(A/P 8%, 1)(A/P 10%, 1); c. A(A/F 6%, 1)+A(A/P 8%, 1)(A/F 6%, 1)+A(A/P 10%, 1/A/P 8%, IMA:F 6%, 1) d. A(P/F 6%, 1){1+(P/F 8%,1)+(P/F 8%, 1)(P/F 10%, 1); 21-23) A SR100,000 is invested into a fund pays an interest of 12.12%/year quarter in order to make 36 monthly withdrawals. Each withdrawal decreased by 2% from the previous one and the first withdrawal will be made 2 months after the investment. Determine the following: 22) The interest rate that should be used to solve this problem. a. 5% b.3% c.1% d. 12% 23) Assume the answer of the previous question is 5% compounded monthly, determine the size of the first withdrawal: a. SR 4,401 b. SR 2,205 c. SR8,019 d. SR 6,321 24) Assume the first withdrawal is SR 5000, what is the size of the 8th withdrawal b. SR 3,491.69 d. SR 5,231.22 a. SR 4,340.63 c. SR 4.253.81 25) Determine the present worth of the following cash flow at an interest rate of 15% compounded continuously: 4 year CF (SR) 1 2000 2 2000 5 4000 2000 2000 a. SR 10.112.1 b. SR 7,653.4 c. SR 4,677.44 d. SR 7.465.4 BONUS) Determine the value of X that makes the below two cash flow diagrams equivalent at -10%: AS6500 She SHOCK S500ax $5000