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Determine the net present value of taking the investment

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Question - Time value and money

1. Suppose Business Finance, ltd. has an opportunity to acquire a new asset for P 23,159,552 today that will increase the company's cash inflow by P 5,172,961 every year up to the end of its useful life. The new asset has 5 years of estimated useful life. Determine the net present value of taking the investment if the effective interest is 8 %.

2. An entity borrowed P 5,725,571 at 4 % interest rate per annum for 17 years. Find the maturity value.

3. You are planning to invest P 5,087,722 in a bank with 8 % simple interest. Find the time (in years) needed to make it P 37,555,663.

Reference no: EM133055133

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