What is the value of the investment upon maturity

Assignment Help Finance Basics
Reference no: EM132707602

Future Value Problems

Problem #1

On January 1, 20x0, Company D plans to invest in an investment that requires annual cash outflow of Php5,000 for first 5 years and another Php6,000 for last 5 years starting on December 31, 20x0 and compounded annually. The prevailing interest rate of this kind of investment is 10% annually. What is the value of the investment upon maturity? (Round your FV factor in 3 decimal places)

Problem #2

On January 1, 20x0, Company E plans to invest in an investment that requires cash outflow of Php3,000 every June 30 th and December 31 st of each year for 5 years. The prevailing interest rate of this kind of investment is 10% annually. What is the value of the investment upon maturity? (Round your FV factor in 3 decimal places)

Problem #3

In an invest entered by Company F on January 1, 20x0, it requires Php8,000 annual payment that started upon entering in the contract and will earn 11% annually. What is the value of the investment upon maturity? (Round your FV factor in 3 decimal places)

Problem #4

Company G entered in an investment that requires down payment of 40% with the equivalent amount of Php35,000 upon entering the contract, 45% will be paid after 1 year of the investment and the remaining 15% will split to 3 annual installments on the succeeding years. The investment will mature after 10years and earns interest of 11% annually. What is the value of the investment upon maturity? (Round your FV factor in 3 decimal places)

Reference no: EM132707602

Questions Cloud

Post the transactions to t accounts for hanshew real estate : Oct. 1 Stockholders invested $35,000 in exchange for common stock of the corporation.Journalize the transactions. Do not provide explanations.
Briefly describe characteristics you would expect : Identify and briefly describe characteristics you would expect to find in a successful manager of this type of venture
How krishna respond to believers who pray to another god : How is the concept of God in Hinduism similar and/or different from the Judeo-Christian concept of God? How does Krishna respond to believers who pray.
Weight respectively for the debt and the common stock : Regal industries has the following capital structure. Its corporate tax rate is 35%.
What is the value of the investment upon maturity : The prevailing interest rate of this kind of investment is 10% annually. What is the value of the investment upon maturity?
What is the current market price of bonds for jackson corp : Jackson Corp., The bonds have a yield to maturity of 6%. What is the current market price of these bonds? Round your answer to the nearest cent.
What is Misty income from continuing operations : Selling and administrative expenses 260. Misty's effective tax rate is 30%. What is Misty's income from continuing operations
What is the firm weighted average cost of capital : The company's tax rate is 37 per cent. What is the firm's weighted average cost of capital?
What are the factors that make an applicant turn down a job : In a supported opinion, what are the factors that make an applicant accept or turn down a job? The response must be typed, double spaced.

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain marketing role in coordinating

Select two of the following departments and explain marketing's role in coordinating their distinct functions:

  What will be their unit increase in productivity per hour

Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hours per day making the 120 boxes. What will be their unit increase in productivity per hour

  How might stock options affect profitability

Why can a relatively small number of stock appreciation rights prove to be a material drain on future earnings and cash of a company?

  Why are psychologists sometimes interested in epidemiology

Why do researchers use probability rather than nonprobability samples when doing descriptive research?

  Accumulate in a? tax-deferred account earning

Javier is currently paying ?$1,200 in interest on his credit cards annually.? If, instead of paying? interest, he saved this amount every? year

  Supply chain strategy for profit to improve

What percentage improvement is needed in the supply chain strategy for profit to improve to $25,000? What is the cost of material with a $25,000 profit?

  What act or law enacted by the us government and the irs is

what act or law enacted by the us government and the irs is making it difficult for us citizens to do banking

  Computation of yield to maturity

Computation of yield to maturity and The face value is $1,000 and the current market price is $1,020.50

  What is the standard deviation of these expected returns

The probability of a normal economy is 74 percent while the probability of a recession is 15 percent and the probability of a boom is 11 percent. What is the standard deviation of these expected returns?

  Estimate of the company cost of equity

What is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends? What if you use the geometric average

  Calculate the net profit margin

Calculate the net profit margin earning before interest and taxes is $20,000, net income is $10,000, sales are $50,000, and total assets are $100,000

  What is your salary in the 10th year

Your first job pays your $45,000 first year, $48,000 second year and $49,000 third year. Then you switch to another job and make $52,000 in the first year. Your pay increases by 4% for the next six years (10 years total)What is your salary in t..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd