ZuoTi.Pro
Question

Please Calculate the equivalent series of annual payments (end of the year, 1 to 4) for the investment over the 4 year life with nominal 14% interest rate compounded annually. With 1500 dollars investment at present time, income of 600, 500, 400, and 300 dollars in the end of first, second, third, and fourth year plus resale value of 1200 dollars in the end of fourth year. Please explain your work in detail. C-1,500 600 -500 -400-300 L-$1,200 0 2 4 C: Cost, I: Income, L: Salvage Value Please be careful about the signs. Costs have negative but income and Salvage Value have positive signs.

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Annual Payments Cashflow PVF @ 14% Year C) PV 1 0.877 526.2 0.769 384.5 0.674 269.6 0.592 177.6 2 500 섹X) 300 4 710.4 568.3 4

Investment of 1500 has generated incomes
as stated above for 4 years …also the salvage
value is a cash in at the 4 th year
which is discounted at 14% for 4 years
0 0
Add a comment
Know the answer?
Add Answer to:
Please Calculate the equivalent series of annual payments (end of the year, 1 to 4) for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Calculate the equivalent series of annual payments (where the payments are made at the end of...

    Calculate the equivalent series of annual payments (where the payments are made at the end of the year in each of periods 1 to 4) for an investment with a capital cost of $1,500 and annual cash flows as shown in the table below. The salvage value of the investment at the end of Year 4 is $1,200. The interest rate, compounded annually, is 16%. Please be careful about the signs. Costs have negative signs but income and Salvage Value...

  • Calculate the equivalent series of annual payments (where the payments are made at the end of...

    Calculate the equivalent series of annual payments (where the payments are made at the end of the year in each of periods 1 to 4) for an investment with a capital cost of $1,500 and annual cash flows as shown in the table below. The salvage value of the investment at the end of Year 4 is $1,200 The interest rate, compounded annually, is 16%. Please be careful about the signs. Costs have negative signs but income and Salvage Value...

  • Hello! I need help solving these problems for engineering economy. Please show the full solution and...

    Hello! I need help solving these problems for engineering economy. Please show the full solution and all work for BOTH PROBLEMS. please write neatly and large (the resolution of photos on the site are low). please be as detailed as possible and answer BOTH questions. Thank you 7. Using tables for uniform gradients, solve for the equivalent future value at the end ofyear 7 ifi-1896. 800 600 400 200 4 200 200 8. Find the present equivalent worth for the...

  • Please give step by step solution. no excel The plant manager may purchase a piece of...

    Please give step by step solution. no excel The plant manager may purchase a piece of unusual machinery for $10.000. Its resale value after 1 year is estimated to be $3000. Because the device is sought by antique collectors, resale value is rising $500 per year. The maintenance cost is $300 per year for each of the first 3 years, and then it is expected to double each year. Thus the fourth-year maintenance will be $600; the fifth-year maintenance, $1200,...

  • You make the following five end-of-year deposits into your investment account that earns 9% annual interest:...

    You make the following five end-of-year deposits into your investment account that earns 9% annual interest: $600 in year 1, $700 in year 2, $500 in year 3, $300 in year 4, and $400 in year 5. Note that the first cash flow of $600 which occurs at the end of year 1 earns interest for four years.What is the balance in your investment account at the end of year 5? Round to the nearest dollar amount.

  • Question (2): (4 Marks) 1- An investment pays $400 in one year, X amount of dollars...

    Question (2): (4 Marks) 1- An investment pays $400 in one year, X amount of dollars in two years, and $500 in three years. The total present value of all the cash flows (including X) is equal to $1,500. If (i) is 6 percent, what is X? (2 Marks) 2- Calculate the future value of $12,000 invested today for 3 years if your investment pays 8% compounded semiannually. (1.0 Mark) 3. Calculate the present value of $9,000 received 6 years...

  • Hello! I need help solving these problems for engineering economy. Please show the full solution and...

    Hello! I need help solving these problems for engineering economy. Please show the full solution and all work for BOTH PROBLEMS. please write neatly and large (the resolution of photos on the site are low). please be as detailed as possible and answer BOTH questions. Thank you 6. Develop an equation to solve (NO NEED to solve it) for the equivalent future worth for the year 15t, using a nominal interest rate of 10% compounded. (You must use a gradient...

  • Question 4 The value of a 7 year lease that requires payments of $750 made at...

    Question 4 The value of a 7 year lease that requires payments of $750 made at the beginning of every month is $60,800. What is the nominal interest rate compounded monthly? % Round to two decimal places You invested $8,500 at the end of each quarter for 6 years in an investment fund. At the end of year 6, if the balance in the fund was $224,000, what was the nominal interest rate compounded quarterly? Round to two decimal places

  • 12. Calculate the payment to be received at the beginning of each month for 15 years...

    12. Calculate the payment to be received at the beginning of each month for 15 years from an investment of $250,000.00 earning 14.4%, compounded monthly. 13. Calculate the monthly payment for a home loan of $100,000 financed at 7% over 30 years. 14. Calculate the monthly payment for a home loan of $150,000 financed at 6 ¾% over 15 years. 15. Calculate the NPV of a machine which is bought for $5,000.00, sold at the end of year 5 for...

  • At year-end 2016, XYZ's statement of financial position showed current assets = $700, fixed assets =...

    At year-end 2016, XYZ's statement of financial position showed current assets = $700, fixed assets = $1,500, intangible assets = $200, current liabilities = $600, and long-term liabilities = $1,400. What is the value of the shareholders' equity account? Select one: O a. $600 O b. $500 O c. $1,100 O d. $300 O e. $400

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT