Present Value Problems

Problem #6

6. On January 1, 20x0, Company F plans to invest in a 10-year investment that requires an outlay of Php200,000 on December 31, 20x0 and will earn Php150,000 on the 5th year and another Php150,000 upon maturity, compounded annually. The annual prevailing interest rate of this kind of bond is 11%. What is the net present value of the investment? (Round your factor in 3 decimal places)

Problem #7

7. On January 1, 20x0, Company G plans to invest in a 10-year investment that requires an outlay of Php250,000 over 5 years starting December 31, 20x0 and will earn Php180,000 on the 5th year and another Php180,000 upon maturity, compounded annually. The annual prevailing interest rate of this kind of bond is 12%. What is the net present value of the investment? (Round your factor in 3 decimal places)

Problem #8

8. On January 1, 20x0, Company H plans to invest in a 10-year investment that requires an outlay of Php150,000 over 5 years starting December 31, 20x1 and will earn Php250,000 upon maturity, compounded annually. The annual prevailing interest rate of this kind of bond is 8%. What is the net present value of the investment? (Round your factor in 3 decimal places)

Problem #9

9. On January 1, 20x0, Company I plans to invest in a 10-year investment that requires an outlay of Php100,000 over 5 years starting January 1, 20x0. The investment will earn Php300,000 over 10 years, compounded semi-annually. The annual prevailing interest rate of this kind of bond is 8%. What is the net present value of the investment? (Round your factor in 3 decimal places)

Problem #10

10. On January 1, 20x0, Company J plans to invest in a 10-year investment that requires an outlay of Php100,000 over 5 years starting December 31, 20x0. The investment will earn the following every year: First 3 years- Php20,000, Next 3 Years- Php35,000, Next 3 years- Php40,000 respectively and Php15,000 for the last year, compounded annually. The annual prevailing interest rate of this kind of bond is 8%. What is the net present value of the investment? (Round your factor in 3 decimal places)