An engineer received a bonus of $12,000 that he will invest now. He wants to calculate the equivalent value after 24 years, when he plans to use all the resulting money as the down payment on an island vacation home. Assume a rate of return of 9%% per year for each of the 24 years. Find the amount he can pay down, using the tabulated factor, the factor formula, and a spreadsheet function.  B)Anood invests $10,000 in a fund that pays 9% compounded annually. If she makes 11 equal annual withdrawals from the fund, how much can she withdraw if the first withdrawal occurs 1 year after her investment?

Q: An engineer who is about to retire has accumulated $50 000 in a savings account that pays 6% per…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Save 20% of Yearly Income Income in first year = 1,000,000 Savings in first year = 20% * 1,000,000 =…

Q: Lillian is considering using some of the cash generated from her mail-order business to open a…

A: Breakeven Point in Value = Fixed Cost / Pv Ratio PV ratio = Sales % - Varaible Cost %…

Q: How long will Mr.Andi's account have value in the future of IDR 3,000,000 at a rate of return of 6%…

A: Mr. Andi invests money IDR 100,000 annually and it has been assumed that the deposit is made at the…

Q: Albert has told you that one of his goals is to start his own business within three years. He has…

A: We need to compute the present value of $7,000 discounted @5.5% p.a for 5 years to determine how…

Q: An engineering student decides to accumulate $500,000 by her sixt pects to start by investing a…

A: Explanation of Concept:-  Annual worth concept which is been used in the present problem states that…

Q: could you go step by step on how to solve?

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: The nihilist Ivan is setting up a recording studio which will have an annual revenue of $70,000 and…

A: The Net Present value is an important technique of capital budgeting. It considers the time value of…

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…

Q: A company is considering investing in a new machine that requires a cash payment of $47,947 today.…

A: Internal rate of return method: Internal rate of return method is one of the capital investment…

Q: One of the companies is setting up a project to build housing units in which the investment volume…

A: Capital budgeting techniques: Capital budgeting techniques are tools that are used to evaluate or…

Q: An investor is considering borrowing $500,000 at 12% compounded monthly to upgrade the windows of an…

A: Net present value is the technique used in capital budgeting to evaluate the acceptability of the…

Q: An entrepreneur would like to buy a piece of equipment for his business. The equipment cost $50,000…

A: Equipment Cost = $ 50000 Annual Increase in cash flow = $ 20000 Years= 5 Internal Rate of return…

Q: Ashley projects that she can get $100,000 cash per year for 5 years on a real estate investment…

A: Present Value:-PV is the value that companies calculate for the proposed project and estimate their…

Q: Sam may upgrade his electric heating system to a natural gas unit. The investment will be $3000…

A: The installments could be considered at the time when it would be taken to accumulate some amount.…

Q: Jason is setting up a recording studio which will have an annual revenue of $70,000 and annual cost…

A: Net present value: Net present value is the the difference between initial investment and present…

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…

Q: An investor can make an investment in a real estate development and receive an expected cash return…

A:

Q: lan is considering investment online publishing company and needs to work out the present value. He…

A: Following details are given in the question : Future value of cashflow = $100000 Time period = 4…

Q: A startup is considering buying a $295,000 piece of equipment. If it purchases the equipment, it…

A: If loan taken for $295,000 at 3% for 5 year; Yearly EMI = $63,609.12 Now, we calculate the After tax…

Q: Using the Rule of 72. Using the rule of 72, approximate the following amounts. If the value of land…

A: Rule 72, gives an approximate  figure of how much time it will take  to double an amount at a known…

Q: An investor has an opportunity to invest in a rental property that willprovide net cash returns of…

A: Calculation of the present value of the cash return is shown below:

Q: Stuart Daniels estimates that he will need $26,000 to set up a small business in 7 years. (a) How…

A: The concept of the time value of money states that money earns interest and hence, money held today…

Q: Ronald has an investment opportunity that promises to pay him $52,000 in three years. He could earn…

A: Present value = Future value * Present value of $1 table factor

Q: Seema is looking at an investment in upgrading an inspection line at her plant. The initial cost…

A: Capital Recovery: Using the capital recovery factor, you can figure out how much money you have in…

Q: In an effort to save money for early retirement, an environmental engineer plans to deposit $1200…

A: Given information: Monthly deposit of $1,200 for every 6 months Interest rate of 8% per year Number…

Q: You plan to purchase an office space in Chamblee's Chinatown for $50,000 at the end of year 2021.…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Your cousin Vance tells you that you can invest $15,000 in his business, and he will pay you back…

A: An investment is refer as an asset purchased with intention to earn income at some time in future.…

Q: An enterprising student invests $1,000 at an annual interest rate that will grow the original…

A: According to the concept of time value of money,  the value of a currency unit is more in today's…

Q: Two years ago, the Fun Center deposited $3,200 in an investment account for the purpose of buying…

A: given,r = 6.85% A-2= $3200 A0= $5000 A1= $3500

Q: Danny creates up an investment arrangement for friend that will return $5000 the first year, $6125…

A: Given: Return in 1 year =$5000Return in 2 year =$6125Return in 3 year =$7250no of years return…

Q: You plan to buy some undeveloped land that should sell for $180,000 in three years. What is the most…

A: Present Value: The term present value is defined as the current or present day’s value of the amount…

Q: Bob has saved $ 5000 towards the purchase of a car costing $ 7000. For how many months does Bob need…

A: When the interest is computed on the principal amount along with all the previously accumulated…

Q: An engineer has been offered an investment opportunity that will require an immediate cash outlay of…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…

Q: Which investment will help him reach his goal faster? Approximate the time that each investment will…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: A 2,000 square foot house in New Jersey costs $1,725 each winter to heat with its existing…

A:

Q: Bill plans to open a self-serve grooming center in a storefront. The grooming equipment will cost…

A: Profitability index if less than one should be rejected and greater than one should be accepted,…

Q: A mechanical contractor is trying to calculate the present worth of personnel salaries over the next…

A: given that: interest rate= 12%= 0.12 n (no. of period)= 5 years 1st year salaries=$150000 (S) since…

Q: A company has had record profits and decided to use some of the profits to pay for manufacturing…

A: Annuity is the series of payment made by an investor at fixed interval for specified period of time.…

Q: Assume that a money manager is considering the buy of a $35,000 machine and that he appraises that…

A: The question is to take a decision to buy a machine based on expected interest rate earing and…

Q: Albert has told you that one of his goals is to start his own business within three years. He has…

A: We need to compute present value of $7,000 discounted @5.5% p.a for 5 years to determine the amount…

Q: A chemical engineer wants to deposit an amount now such that she can withdraw an equal annual amount…

A: Cash flow diagram:

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: The question is based on the concept of future value of money which says that future value of money…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.