Question

Questions 4,5,6and 7

f 7.5% per year after tax over 5 years. During the five 4. An organization's financial statements show an average ROA o year period, general inflation increased by 2.5% what is the net ROA after tax for the organization? 5. Microsoft Co. places l 00,000 inan investment that has a return of 6% The investment is placed there for 7 years, and then at the end of 8 year, annual withdrawals begin and continue for 5 ycars a) Draw the TVM diagram b) What is the annual amount that may be withdrawn during the S-year period? 6. An individual is considering the purchase of a new car (mini van). The cost of a mini van is $35,000, and the estimated residual value after 5 years is $5000, and maintenance&operating costs are to be $2000 per year a) What is the annual cost based on depreciation? he is able to earn 10% on investment calculate the annual cost of the minivan using the concept of TVM b) 1 7, Under 10% interest rate Compute the present value, P, for the following cash flows. 1200 600 600 600 600 600 0 4

Answer 1

600 ÷ (1+to) boo 누 1.4641 409-81 .-12.002 1.61051 5 ー_600 -year-E 545,45 40981 32 7.03resert
Answered only highlighted question (question no. 7)