We save an amount of 100 USD every of next three years where the interest rate...
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We save an amount of 100 USD every of next three years where the interest rate is 10% p.a. Calculate the future value of this savings where the frequency of compounding is as follows: FV, FV, FV, FV, FV 5. The company would like to buy a machine for 10 mil. USD. The machine would be depreciated for 3 years using the straight-line method. Company has the following options: Loan: maturity 3 years, interest 5 % p.a., equal annuity payment Leasing: leasing coefficient 1.3; advanced payment 30 %; maturity 5 years; annual payment The corporate tax rate is 20 %. 6. An investment project is expected to generate $ 20 million in revenues next year, growing by 3% forever. Expenses are expected to remain unchanged at 18 million forever. W is the value of the project if it is required return is 10%? 7. We consider the following cash flows which are in the table below, interest rate 5 % p.a. Frequency of compounding is twice a year. Calculate PV, FV, FV FV Years Cash flows 1 2 3 4 200 100 0 150 We save an amount of 100 USD every of next three years where the interest rate is 10% p.a. Calculate the future value of this savings where the frequency of compounding is as follows: FV, FV, FV, FV, FV 5. The company would like to buy a machine for 10 mil. USD. The machine would be depreciated for 3 years using the straight-line method. Company has the following options: Loan: maturity 3 years, interest 5 % p.a., equal annuity payment Leasing: leasing coefficient 1.3; advanced payment 30 %; maturity 5 years; annual payment The corporate tax rate is 20 %. 6. An investment project is expected to generate $ 20 million in revenues next year, growing by 3% forever. Expenses are expected to remain unchanged at 18 million forever. W is the value of the project if it is required return is 10%? 7. We consider the following cash flows which are in the table below, interest rate 5 % p.a. Frequency of compounding is twice a year. Calculate PV, FV, FV FV Years Cash flows 1 2 3 4 200 100 0 150
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1 To calculate the future value of saving 100 USD every year for the next three years at an interest rate of 10 pa with different compounding frequenc... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
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