2. Draw the cash flow diagram for the following elements. Economic Life 10 years Php 20,000,000 Php 1,000,000 Php 500,000 Additional Income at Year 5 Php 50,000 Php 80,000 Php 100,000 First Cost Annual Operating Cost Annual Income Additional Cost at Year 8 Salvage Value
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- ou decided to go and apply for a credit card at your local financial institution.The Prime rate currently announced on June 1 was 3.25%. You have goodcredit history and a FICO score of 700. The lowest rate that they can offer toindividuals is a 18.99% APR for a credit card that gives cashback on purchasesand rewards. You were offered 21.99% APR for the credit card. How did thelender determine or calculate what rate they should offer you?Draw cash flow as well !!Question 1Last month you lent a work colleague $5000 to cover some overdue bills. He agreed to pay you in1 month with interest at 2% for the month, thus owing you $5100. Today, when the repayment isdue, he asked you to extend the loan for another month and he would pay you the $5100 nextmonth. In the meantime, you have had the offer to invest as much as you wish in an oil-well venturethat is expected to pay 25% per year and a hot new IT stock that is estimated to return 30% thefirst year. If you let your colleague have another month, what is the opportunity cost of yourdecision? (Note: Express your answer in dollar and percentage amounts.)
- Capital Compound Amount Factor Compound Amount Factor Sinking Fund Factor me nearest dollar.) Present Worth Factor Recovery Factor Present Worth Factor To Find P To Find A To Find A To Find F Given P F/P To Find P Given F To Find F Given A FIA Given A Given F Given P N. P/F PIA A/F A/P 1.0300 0.9709 1.0000 0.9709 1.0000 1.0300 1.9135 0.4926 0.5226 2.0300 3.0909 4.1836 1.0609 0.9426 1.0927 0.9151 2.8286 0.3235 0.3535 4 1.1255 0.8885 3.7171 0.2390 0.2690 1.1593 0.8626 5.3091 4.5797 0.1884 0.2184 6 1.1941 0.8375 6.4684 5.4172 0.1546 0.1846 1.2299 0.8131 7.6625 6.2303 0.1305 0.1605 8 1.2668 0.7894 8.8923 7.0197 0.1125 0.1425 7.7861 8.5302 9.2526 9 1.3048 0.7664 10.1591 0.0984 0.1284 10 1.3439 0.7441 11.4639 0.0872 0.1172 11 1.3842 0.7224 12.8078 0.0781 0.1081 12 1.4258 0.7014 14.1920 9.9540 0.0705 0.1005 13 1.4685 0.6810 15.6178 17.0863 10.6350 0.0640 0.0585 0.0538 0.0940 14 1.5126 0.6611 11.2961 0.0885 0.0838 15 1.5580 0.6419 18.5989 11.9379 16 1.6047 0.6232 20.1569 12.5611 0.0496 0.0460…Edinburgh Newcastle £000 £000Franchise fee (year 0) 8,700 7,950New buses (year 0) 4,120 3,890Scrap value (year 5) 110 95Forecast net cash inflowsYear 1 3,780 3,500Year 2 4,150 3,850Year 3 4,550 4,200Year 4 5,120 5,150Year 5 4,900 4,950 calculate the payback period for both the…Co Question 16 What type of annuity is represented by the graph below? P 1 2 3 k-1 k A, A, A3 Ak-1 AK A perpetuity deferred annuity C annuity due D ordinary annuity E uniform gradient annuity Question 17 Pri
- Leon and Heidi decided to invest $2,500 annually for only the first eight years of their marriage. The first payment was made at age 25. If the annual interest rate is 12 percentage, how much accumulated interest rate and principal will they have at age 65?Question A Luke borrows $200 000 from a bank to set up a medical practice. He agrees to pay a fixed interest rate of 18.48% per year (calculated monthly) and to repay by equal monthly instalments over 10 years. Calculate the monthly payment and breakdown the first two payments into interest and principal components. Also, how does the last payment breakdown? Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line.Subject : Engineering Economics Q 1. At the end of 13 years, how much is a $253 initial deposit worth, assuming an annual interest rate of 07 percent compounded (i) Annually? (ii) Semiannually? (iii) Quarterly? (iv) Monthly (v) continuously?
- allie has won a lottery that pays her $135,000 at the end of this year and increases by 11.25% per year thereafter for 26 years. leon has offered allie $ 2,500,000 today in exchange for all the money she will receive. if gail can get 13% per year compounded every 6 months. a. determine the present worth of the lottery winnings. b. does leon offer a good deal? (yes/no) c. what is the future worth of the better deal?You deposit a sum d in a bank account in year zero. The rate of interest on deposits is r, and interest is paid annually. If you allow the interest to compound, how much will you have in the account after n years? a. d (1+n)" Ob.d (1+r)" oc. dr C. Od.d+d_rn 0 01.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000 d)$20000 2.The simple interest on a $6500 loan at 15% for 9 months is. a)$731.25 b)$7312.50 c)$73.13 d)$2925 3. If we deposit $5000 in an account that pays 9% per year. Find the amount of simple interest earned during 8 months. a)$3000 b)$300 c)$360 d)$3600 4.The simple interest charged on a loan amount of $8500 for 2 years was $1275. What rate of interest was charged a)22.5% b)3.75% c)15% d)7.5% 5.What rate of simple interest will make a principal double itself in 6 years. a)16.67% b)8.33% c)33.33% d)4.16% 6.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000 d)$20000