Add cash flow diagram and answer correctly. I will rate and review. A secondhand motorcycle can bepurchased by 5 end-of-month payments.The first payment would be Php. 5,000 andwould increase by Php. 500 every payment.Should a buyer opt to pay it at once ratherthan by installments, how much would itcost him if money is worth 6%compounded quarterly?Plss answer it step by step included thefromula unitsand also the cash flow diagram thanks

Present value is the present worth of any sum of money to be received in the future at a specified…

Answered: A secondhand motorcycle can be…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Answer and draw the cashflow diagram The buyer of a certain machine may pay either 200,000 cash down payment and 200,000 annually for the next 6 years, or pay 350, 000 cash and 200, 000 annually for the next five years. If the money is worth 12% compounded annually, which method of payment is better for the buyer and by how much?
A loan for P50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of money? Draw the cash flow diagramwith your solution.
不 The cash flow diagram below has an internal rate of retum of 27% What is the value of Y if perpetual service is assumed? Click the icon to view the diagram for cash flows Click the icon to view the interest and annuity table for discrete compounding when the MARR is 27% per year If perpetual service is assumed, the value of Y is $(Round to the nearest dollar) More Info N 1 2 3 4 5 6 7 a 9 10 Single Payment Discrete Compounding: -27% Compound Amount Present Factor To Find F Given P F/P 12700 10120 2.0484 20014 33038 4 1950 5.3258 67675 85040 10 9153 Worth Factor To Find P Given F PIF 07874 06200 04002 Compound Amount Factor To Find F Given A FIA 0.1164 0.0016 1.0000 2.2700 3.8829 59013 85327 0.3844 03027 02303 0.1877 0.1478 21.3612 Uniform Series Present Worth Factor To Find P Given A PIA 07874 1.4074 10956 2:2000 25827 11.8366 2.8210 10.0324 3.0087 3.1564 3.2720 28.1287 307235 33644 Sinking Fund Factor To Find A Given F A/F 1.0000 04405 02575 0.1600 0.1172 0.0045 00624 0.0405 00356…
Determine the value of W on the right-hand side of the accompanying diagram that makes the two cash-flow diagrams equivalent when /=9% per year. Q $1,150 30 1 2 End of Year $1,150 3 4 5 $1,150 W Click the icon to view the interest and annuity table for discrete compounding when i=9% per year. End of Year The equivalent amount, "W", of the cashflows provided in the diagram is $ 1739. (Round to the nearest dollar.) W OU
You will be receiving the following cashflows: $7,000 today, $4,000 in two years, and $10,000 in five years. If the appropriate discount rate is 5.5%, what is the present value of this cashflow stream? a. $12,623 O b. $18,245 O c. $23,387 O d. $21,052 O e. $15,408 O f. $15,783 g. $9,789 h. $17,739
Assume you have P10,000 in your savings account, which is earning 12% interest compounded annually. Determine how long it will take for your money to double. Follow the format. 1. Given: 2. Formula: 3. Required: 4. Cash flow Sketch: 5. Solution:
Example 1.4: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 S2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of 42 $3000 per year for the following 3 years. How would the cash flow diagram appearif i 8.5% per year?, assume the present worth equal $10,000 find the Future.
QI. KNOWLEDGE AND UNDERSTANDING DRAWING CASH FLOW DIAGRAM Draw the ww m mm cash flow diagram for the following : 1. Assume that you want to deposit an amount (BD120,000.00) into an account three years from now in order to be able to withdraw BD750 per year for ten years starting four years from now. Assume that the interest rate is 4.5% per year. Construct the cash flow diagram. 2. Suppose that you want to make a deposit into your account now such that you can withdraw an equal amount (A1) of BD300 per year for the first five years starting one year after your deposit and a different annual amount (A2) of BD600 per year for the following three years. With an interest rate (i) of 5.5% per year, construct the cash flow diagram. 3. If you deposit BD1,500 now, BD3,600 three years, BD2000 seven years, and BD1,800 nine years from now in a savings account that pays 10% interest, how much would you have at the end of year 25? Construct the cash flow diagram.
SOLVE AND DRAW THE CASHFLOW DIAGRAM. A. If money is worth 4% compounded monthly, what payment at the end of each quarter will replace payments of P500.00 monthly? B. What is the present worth of a P1,000.00 annuity over a 10 year period, if interest rate is 8%?
You are currently investing your money in a bank account which has a nominal annual rate of 7 percent, compounded monthly. How many years will it take for you to double your money? m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV Identify variables and use excel
1. Calculate the present value of each cashflow using a discount rate of 7%. Which do you prefer most? Show and explain all supporting calculations. a. Cashflow A: receive Php60 today and then receive Php60 in four years. b. Cashflow B: receive Php12 every year, forever, starting today. Cashflow C: pay Php50 every year for five years, with the first payment being next year, and then subsequently receive Php30 every year for 20 years. d. Cashflow D: receive Php9 every other year, forever, with the first payment being next C. year.
2b. Compute the future value of a $100 cash flow for the same combinations of rates and times: (Round your answers to the nearest cent.) d. r = 4%, t = 20 years

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