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A company is considering investing in a project. The project requires an initial investment of three payments, each of RM105,000. The first is due at the start of the project, the second six months later, and the third payment is due one year after the start of the project. After 15 years, it is assumed that a major refurbishment of the infrastructure will be required, costing RM200,000. The project is expected to provide a continuous income stream as follows: • RM20,000 in the second year • RM23,000 in the third year • RM26,000 in the fourth year • RM29,000 in the fifth year Thereafter the continuous income stream is expected to increase by 3% per annum (compound) at the start of each year. The income stream is expected to cease at the end of the 30th year from the start of the project. Find the net present value of the project at a rate of interest of 8% per annum effective (to the nearest RM1,000).
You just turned 25 and got a great job. Wisely, you decide to start saving for retirement right now. How much should you save at the end of each month (level amount) so that when you turn 65 and retire you can withdraw RM 5000 per month at the end of the first month (age 65 and 1 month) and your withdrawals increase by 2% each month thereafter for 30 years. You can earn a nominal rate of 8% compounded monthly during your working years and a nominal rate of 6% compounded monthly during your retirement years.
In a shop, all prices are reduced by 20% to give the sale price. The sale price of a TV set is then reduced by 30%. Mary says, “30+20=50, so this means the normal price of the TV set is then reduced by 50%” Is Mary right? You must give a reason for your answer.
Identify an example of inventory in your own life. Estimate how much it costs you to hold this inventory. Estimate the "ordering cost." How often do you replenish this inventory, and which of the inventory policies does this most closely resemble?
Mr. Shil Wants to record the financial transactions of his newly started business. Discuss what accounting steps/stages he need to adhere so that the transactions can be duly recorded and processed in order to prepare the financial statements.
9.The valuation of an annuity entails concepts such as ____________________ a.None of the option b.time value of money, interest rate, and future value c.time value of money and future value d.interest rate and future value 10.Payments that are required at the beginning of each period denotes _____________ a.ordinary compound interest due b.ordinary annuity due c.ordinary simple interest due d.Annuity Due
7.Straight bonds usually pay coupon payments at the end of every six months until the bonds maturity date is an example of… a.ordinary simple interest b.Ordinary compound interest c.ordinary annuity d.actual simple interest 8.Mortgage payments are a.ordinary annuity b.perpetuity c.annuity due d.annuity-immediate
1._______________ are essentially a series or fixed payments required from you or paid to you at a specified frequency over the course of a fixed time period. a.Annuities b.percentage interest c.simple interest d.compound interest 2.If the original principal is p Naira and if the interest is compounded annually at the rate of r per year, then at the end of the first year the new principal will be … a.\\(P(1+r)^{2}\\) b.P(1+rn) c.p(1+r) d.P+r
What is the Double declining balance of depreciation (DDB) of four years depreciation schedule for a truck that was purchased for 30000000/= with a life time of 4 years and has residual value of 2000000/=?
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