The cash disbursements for the construction of the new office of ABC Inc., are listed as follows:
Fantastic news! We've Found the answer you've been seeking!
Question:
The cash disbursements for the construction of the new office of ABC Inc., are listed as follows:
PAYMENT 1. Payment of 25,800 at the end of the 2nd and 4th year and 14,965 at the end of the 6th year.
PAYMENT 2. Monthly payments of 3,880 at the beginning of each month for 5 years.
PAYMENT 3. Perpetuity of 2,660 every quarter starting 3 years from now.
If money is worth 9.12% compounded semi-quarterly, determine the following.
A. PRESENT WORTH OF ALL THE PAYMENTS.
B. EQUIVALENT SEMI-ANNUAL (END-OF-PERIOD) PAYMENTS OF ALL PAYMENTS FOR 5 YEARS.
C. EQUIVALENT SINGLE PAYMENT AT THE END OF 10 YEARS.
Related Book For
Project Management Achieving Competitive Advantage
ISBN: 978-0133798074
4th edition
Authors: Jeffrey K. Pinto
Posted Date: