All payments are end-of-period unless otherwise stated. a) The revenue stream of a project is estimated...

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All payments are end-of-period unless otherwise stated. a) The revenue stream of a project is estimated as $250K in the first year, and grows at 5% p.a. over the 15 years of the study period. MARR is 8% p.a. compounded annually. What is the equivalent AW of the revenue? (5 marks) b) Find the FW (t=20) of $1000 per payment, paid at 2-monthly intervals, over a period of 8 years. Interest is compounded monthly at a nominal 15% p.a. (6 marks) c) A loan of $500K is repaid through a series of annual payments over 10 years. The payments grow by a constant amount of $15K per year. Interest is compounded continuously at a nominal 10% p.a. What is the value of the first payment? (6 marks) d) An investment of $1m is projected to return an income of a nominal $120K p.a. accumulated continuously for a period of 25 years. The MARR is a nominal 8% p.a. compounded continuously. What is the net FW (t=25)? In which year does the project balance first become positive? (8 marks) All payments are end-of-period unless otherwise stated. a) The revenue stream of a project is estimated as $250K in the first year, and grows at 5% p.a. over the 15 years of the study period. MARR is 8% p.a. compounded annually. What is the equivalent AW of the revenue? (5 marks) b) Find the FW (t=20) of $1000 per payment, paid at 2-monthly intervals, over a period of 8 years. Interest is compounded monthly at a nominal 15% p.a. (6 marks) c) A loan of $500K is repaid through a series of annual payments over 10 years. The payments grow by a constant amount of $15K per year. Interest is compounded continuously at a nominal 10% p.a. What is the value of the first payment? (6 marks) d) An investment of $1m is projected to return an income of a nominal $120K p.a. accumulated continuously for a period of 25 years. The MARR is a nominal 8% p.a. compounded continuously. What is the net FW (t=25)? In which year does the project balance first become positive? (8 marks)

Answer rating: 100% (QA)

Financial Calculations a Equivalent Annual Worth AW of Revenue Stream FV of first year revenue 25000... View the full answer