Starr Company decides to establish a fund that it will use 5 years from now to replace an aging production facility. The company will make a $101,000 Initial contribution to the fund and plans to make quarterly contributions of $50,000 beginning in three months. The fund earns 8%, compounded quarterly. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the nearest whole dollar.) What will be the value of the fund 5 years from now? Table Values are Based on: Initial Investment Periodic Investments Future Value of Fund Present Value Table Factor Future Value
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- Starr Company decides to establish a fund that it will use 10 years from now to replace an aging production facility. The company will make a $100,000 initial contribution to the fund and plans to make quarterly contributions of $50,000 beginning in three months. The fund earns 12%, compounded quarterly. What will be the value of the fund 10 years from now?Starr Company decides to establish a fund that it will use 4 years from now to replace an aging production facility. The company will make a $109,000 initial contribution to the fund and plans to make quarterly contributions of $50,000 beginning in three months. The fund earns 12%, compounded quarterly. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the nearest whole dollar.)What will be the value of the fund 4 years from now? Table Values are Based on: n = i = Present Value Table Factor Future Value Initial Investment Periodic Investments Future Value of FundStarr Company decides to establish a fund that it will use 4 years from now to replace an aging production facility. The company will make a $109,000 initial contribution to the fund and plans to make quarterly contributions of $52.000 beginning in three months. The fund earns 4%, compounded quarterly (PV of $1 EV of $1. PVA of S1, and EVA of 5) (Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the nearest whole dollar) What will be the value of the fund 4 years from now? Table Values are Based on 1% Present Value Future Value $ 100.000 S Initial investment Periodic Investments 52.000 Future Value of Fund Table Factor 1.1726 127,813
- Tyu plans to construct an adiitional building at the end of 10 years at an estimated cost of P5,000,000. To accumulate this amount, it will deposit equal year-end amounts in a fund earning 13%. However, at the end of the fifth year, it decided to have a larger building estimated to cost P8,000,000. What is the equal year-end payments made for the first five years?XYZ plans to construct an additional building at the end of 10 years for an estimated cost of P5,000,000.00. To accumulate this amount, it will make equal year-end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building than originally intended to an estimated cost of P8,000,000.00 What should be the annual deposit for the last five years? Please provide CASH FLOW diagram. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.An Engineering Research foundation wishes to set up a trust fund earning 10% compounded annually to provide P 2,613,522 for the lot and building and P 1,443,776 for the initial equipment of a Structural Engineering and Materials Laboratory; pay P 405,996 for the annual operating cost every year; and pay P 528,758 for the purchase of new equipment and replacement of some equipment every 7 years beginning 7 years from now. How much money should be paid into the fund for the building and equipment and to pay for perpetual operation and equipment replacement?
- Demco Products, a company that manufactures stainless steel control valves, has a fund for equipment replacement that contains $500,000. The company plans to spend $85,000 each year on new equipment. (a) Estimate the number of years it will take to reduce the fund to no more than $85,000 at an interest rate of 10% per year. (b) Use the NPER function to determine the exact number of years.Denver University Copy Center buys three copier machines that each have a useful life of seven years and a salvage value of $1000/copier machine. A sinking fund is established to replace all the machines at the end of 7 years. The replacement cost will be $6,000/copier machine. If equal payments are made into the fund at the end of every 6 months and the fund earns interest at the rate of 12% compounded semiannually, what should each payment be?Abc plans to construct an adiitional building at the end of 10 years at an estimated cost of P5,000,000. To accumulate this amount, it will deposit equal year-end amounts in a fund earning 13%. However, at the end of the fifth year, it decided to have a larger building estimated to cost P8,000,000. What is should be the annual deposit for the last five years?
- The management of a condominium association anticipates a capital expenditure of $150,000 in 3 years for the purpose of painting the exterior of the condominium. To pay for this maintenance, a sinking fund will be set up that will earn interest at the rate of 5.6%/year compounded monthly. Determine the amount of each (equal) monthly installment the association will be required to deposit into the fund at the end of each month for the next 3 years. (Round your answer to the nearest cent.)ELJ Corporation plans to construct its own building at the end of 10 years for an estimated cost of P15,000,000.00. To accumulate this amount, it will have to make equal year end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building that originally intended to an estimated cost of P24,000,000.00. What should be the annual deposit for the last 5 years? Answer. P2,203,175.82Lulus Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $12,000,000 for the year. Lyssa Bickerson, staff analyst at Lulus, is preparing an analysis of the three projects under consideration by Caden Lulus, the company's owner. (Click the icon to view the data for the three projects.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Because the company's cash is limited, Lulus thinks the payback method should be used to choose between the capital budgeting projects. a. What are the benefits and limitations of using the payback method to choose between projects? Benefits of the payback method: O A. Easy to understand and captures uncertainty about expected cash flows in later years of a project O B. Utilizes the time value of money and computes each project's unique rate of return OC.…