Murray is planning a project that will cost $22,000. The annual cash inflow, net of income taxes, will be $5,000 a year for 7 ye
1 answer:
Answer:
Net Present Value = $22,815 - $22,000 = $815
Since the value is positive the project shall be accepted.
Explanation:
Cost of project = $22,000
That is initial outflow.
Cash inflow = $5,000 each for 7 years.
Expected rate of return for 7 years = 12%
Therefore, Present value of $1 for 7 years @ 12% = 4.563
Therefore, Cumulative present value of cash flow = $5,000 4.563 = $22,815.
Net Present Value = $22,815 - $22,000 = $815
Since the value is positive the project shall be accepted.
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Answer:
25%
Explanation:
Given:
Seth has a monthly income of $2,500
He has a $400 car payment
He owes $225 on electronic equipment.
Question asked:
What is the percentage of Seth's income he is paying out in debt payments?
Solution:
He has a car payment = $400
He owes on electronic equipment = $225
<em>These two items are treated as debt for Seth as these items are used first then pay for it.</em>
Total debt = $400 + $225
Total debt = $625
Now, we will find percentage of Seth's income he is paying out in debt payments,
Therefore, 25% of Seth's income he is paying out in debt payments.
Answer:
PV $402,264.7261
balance of the mortage
1-y from now $364,445.9041
2-y from now $323,601.5765
3-y from now $279,489.7026
4-y from now $231,848.8788
5-y from now $180,396.7891
6-y from now $124,828.5322
7-y from now $64,814.8148
Explanation:
We sovle for the PV of the annuity of 70,00 during 8 years discounted at 8%
C 70,000.00
time 8
rate 0.08
PV $402,264.7261
To know the value of the outstanding dbet we can repeat this formula changing the values for time
t = 7 $364,445.9041
t = 6 $323,601.5765
t = 5 $279,489.7026
t = 4 $231,848.8788
t = 3 $180,396.7891
t = 2 $124,828.5322
t = 1 $64,814.8148