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- 3 Your company plans to raise price on product A by 5% per year. Due to competition, sales volume from product A is expected to decline at 10% per year. Revenue will be $5M for this year. Alternatively, based on the projection from the marketing department, you may reduce the sales volume decline from 10% to 5% if the price is kept unchanged. The product will be discontinued at the end of year 5 for both scenarios. If the firm's TVOM is 10%, Determine the revenue cash flow streams for both alternatives. What is the Excel financial function to compute PW of the revenue streams6- An engineer has a fluctuating future budget for the maintenance of a particular machine. During each of the first 5 years, $10, 000 per year will be budgeted. During the second 5 years, the annual budget 21 will be $15,000 per year. In addition, $5000 will be budgeted for an overhaul of the machine at the end of the fourth year, and again at the end of the eighth year. What uniform annual expenditure would be equivalent, if interest is 8% per year?SHOW COMPLETE DETAILS AND SOLUTION . 4. A new civil engineer employee start a savings plan in which he saves P 10,000 eachyear for 15 years. He makes her first payment at age 22 and after paying for 15 yearsshe leaves the accumulated sum in the savings plan until she reach age 65. If thesavings plan pays 10% per year, how much will be in the savings account when sheage 65?5. Mr. Jo needs P 4,000,000 immediately to pay for a new home. Having insufficientfund for this, he borrows P 2,000,000 from an insurance company and repay the loanevery six months for 15 years, the first payment being at the end of 8 years from now.If the insurance company charged him 8% compounded semiannually, how much isthe amount of each payment?
- Mary Purchales a $500 bond that has 6 remaining Sem!- annum) 6%. Coupon payments for $450. what would be his return' per' half year periodA 2-year semi-annual T-Note has been stripped into 4 0-coupon bonds with the following observed market prices. Calculate the 24-month spot rate. Term Price 6 monch 97 12 month sa 18 manth 91 24 manth s8 O 13.64% 6.82% 6.49% 6.60% 3.25%Calculate the following rates a)the nomial rate . which equivalent to 9 %. effective sates, companded monthly the effective sate equivalent ddily that to 12/ comp ounded
- PLZ PROVIDE ANSWER ASAP You are interested in replacing an industrial equipment to save labor cost. Labor savings are expected to be $30,000 per year over 10 years. The equipment costs $180,000. Should you buy this equipment if your interest rate is 12%?12. John has a daughter named Jonna, he invested P5000 at 7% account for her education she was born. Her daughter needs 4000 per year to sustain her education for 4 years in college. If Jonna withdraw 4000 at the end of her 17th, 18th, 19th, and 20th birthday, How much will be left in the account at the end of 21* year?d) Interest rate is 9% for years 1-5, and it is 8% for years 5-24 ő Response: nse: 1 2 200 3 i=%10 yıllık 4 5 6 200 200 9 ... 200 96 200 99 F=? yıl
- A company is expected to result 3000$ savings annually for the 6 years, if the rate of interest is 8% what will be the present worth? Select one: a. 13501$ O b. 13461$ O c. 13869$solve this cash flow 500,000 EOSA 35,000 i: 5 2% u. quartedlyYou deposit $1000 today, $3000 one year from now and $4000 two years from now. If there are different inferests.as shawn In the dagram below and t you have a $P000 at the end of year 3. what is the value of i FW-$9000 7% S1000 $3000 S4000 Select.oner O b. 6