What is the present worth of the total payments

Assignment Help Financial Management

Reference no: EM131905249

1) What is the present worth of the total 20 payments, occurring at the end of every four months (i.e. the first payment is in four months), which are $400, $500, $600, increasing by a fixed sum. Interest is 10% nominal per year, compounded weekly.

2) Octavia is looking at an investment in upgrading an inspection line at her plant. The initial cost would be $150,000 with a salvage value of $40,000 after five years. How much money must be saved every year to justify the invest at an interest rate of 15%?

3) Octavia is looking at an investment in upgrading an inspection line at her plant. The initial cost would be $150,000 with a salvage value of $40,000 after five years. How much money must be saved every year to justify the invest at an interest rate of 15%?

Reference no: EM131905249

Questions Cloud

List the characteristics that could be changed : What is the product or service you have chosen for the multiplication technique?List its essential components or processes.

Determine sherrys profit or loss : When the settlement date arrived, Sherry closed out her position by selling a Treasury bills futures contract for 95.64. Ignoring transaction costs.

Formulate a capital budgeting problem that will maximize : A real estate company recently purchased a 52 acre of farm land, and it has $435,000 budgeted to develop recreational facilities.

What is the nominal interest rate on treasury security : What is the nominal interest rate on a 7-year Treasury security? Round your answer to two decimal places.

What is the present worth of the total payments : What is the present worth of the total 20 payments, occurring at the end of every four months .

How much of the payment is taxable : Ron has a $1,000,000 annuity policy inside his IRA. He will receive $65,000 a year from his annuity to fund his retirement. His life expectancy is 20 years.

How many dollars worth of sales are generated from assets : Samuelson's has a debt-equity ratio of 36 percent, sales of $15,000, net income of $2,500, and total debt of $12,700. What is the return on equity?

How the healthcare industry will be changed by these : Predict 3-4 most pressing trends for the success of healthcare organizations in the context of financial sustainability.

Find the shimmers taxable income and tax liability : What are Shimmer's taxable income and tax liability for the year? Use Corporate Tax Rate Table.

User Account

All Pages