ORCHARD LIMITED is oil and gas exploration, production and Development Company. The management of the company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ORCHARD LIMITED is oil and gas exploration, production and Development Company. The management of the company intend to purchase some sub-sea equipment's worth Ghc 20 million. A loan of Ghe 15 million is negotiated with Secure Finance Company. The balance of Ghe 5 million is to be source out external. The terms of the loan is as follows; i. Duration of the loan is for 15 years. ii. Rate of interest is fixed at 10% per annum throughout the 15 years, iii. The annual interest charge is to calculated on the balance outstanding at the beginning of the year iv. Repayment is to be in 15 equal annual instalments v. Each instalment would include both interest and capital. Required; a) What is the value of the annual payment over the 15 years? b) Assume the value of the sub-sea equipment's were to appreciate at the rate of 7% per annum, what would be the value, in 15 years' time, of the sub-sea equipment purchase now at Ghe 20 million. ORCHARD LIMITED is oil and gas exploration, production and Development Company. The management of the company intend to purchase some sub-sea equipment's worth Ghc 20 million. A loan of Ghe 15 million is negotiated with Secure Finance Company. The balance of Ghe 5 million is to be source out external. The terms of the loan is as follows; i. Duration of the loan is for 15 years. ii. Rate of interest is fixed at 10% per annum throughout the 15 years, iii. The annual interest charge is to calculated on the balance outstanding at the beginning of the year iv. Repayment is to be in 15 equal annual instalments v. Each instalment would include both interest and capital. Required; a) What is the value of the annual payment over the 15 years? b) Assume the value of the sub-sea equipment's were to appreciate at the rate of 7% per annum, what would be the value, in 15 years' time, of the sub-sea equipment purchase now at Ghe 20 million.
Expert Answer:
Related Book For
Vector Mechanics for Engineers Statics and Dynamics
ISBN: 978-0073398242
11th edition
Authors: Ferdinand Beer, E. Russell Johnston Jr., David Mazurek, Phillip Cornwell, Brian Self
Posted Date:
Students also viewed these finance questions
-
1. The stepped shaft in Figure Ql is used to transmit a power of 8 kW at 160 rev/min. 1. The stepped shaft in Figure Ql is used to transmit a power of 8 kW at 160 rev/min. Given that G = 70 GN/m,...
-
A flat belt is used to transmit a couple from pulley A to pulley B. The radius of each pulley is 60 mm, and a force of magnitude P = 900 N is applied as shown to the axle of pulley A. Knowing that...
-
A flat belt is used to transmit a torque from drum B to drum A. Knowing that the coefficient of static friction is 0.40 and that the allowable belt tension is 450 N, determine the largest torque that...
-
1) Write a generic function to integrate y(x)dx with the following format function I integrator (x, y, method) where x is a vector and y is a matrix whose columns y(:,j) are vectors of the same...
-
What is the equivalence class of the bit string 011 for the equivalence relation in Exercise 25?
-
Consider a hypothetical market for the hepatitis A vaccine. The market demand (or private marginal benefit schedule) is given as: P = 80 - 0.25Q d where Q d denotes the number of vaccinations...
-
True or False: If MARR \(=10 \%\) and IRR \(=9 \%\), then ERR \( <10 \%\) and \(\mathrm{PW}>\$ 0\).
-
Paul Jordan has just been hired as a management analyst at Digital Cell Phone, Inc. Digital Cell manufacturers a broad line of phones for the consumer market. Pauls boss, John Smithers, chief...
-
3. (25 points) Consider two firms out of a competitive industry. They have the following technologies: C(y) = y + 2y; C2(y) = 1.5y + 3y. Show these firms' individual supply functions on a...
-
How much would you need to save annually to be willing to invest $1.75 million in a process improvement? The internal hurdle rate for process improvements is 18% before taxes over eight years.
-
Please fill in the cells indicated in red, bold font. N I PV PMT FV in in $ 10 5% 50.00 $ 1,000.00 9/16/2021 9/15/2031 Yields 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% Prices Duration 8.27 8.19 8.11 8.02 7.93...
-
The terms "vegan" and "plant-based" are often used interchangeably, but there is a growing effort to define just what is means to follow a plant-based lifestyle. Discuss the differences between these...
-
1.how has economics been used to help managers solve organizational problems and structure more effective organizational structures. 2.how has the concept of "Economic Darwinism" have implications...
-
A wood frame wall consists of 2x6 wood studs (38mm x 140mm)spaced at 16? o.c. (on centre), with fibreglass batt insulation(see ?insulating blankets and batts in Tbl. 8.1) between the studs.Each stud...
-
If college degrees are actually required to have a decent job, why aren't more employers, or even the government, doing more to reduce the overwhelming number of students with heavy debt? And give me...
-
Farmers in New Zealand wake at 5 AM to work hard in their fields growing kiwi because: they have an absolute advantage in the production of kiwi. the value to them of their time and other resources...
-
Could you provide an example of an organ or system that exhibits sensitivity to damage, and elucidate on a specific aspect of human biology that has evolved as a protective mechanism for it?
-
Use critical values to test the null hypothesis H0: 1 2 = 20 versus the alternative hypothesis H0: 1 2 20 by setting a equal to .10, .05, .01, and .001. How much evidence is there that the...
-
A 15° wedge is forced under a 50-kg pipe as shown. Knowing that the coefficient of static friction at both surfaces of the wedge is 0.20, determine the largest coefficient of static friction...
-
The carnival ride from Prob 12.51 is modified so that the 80 kg riders can move up and down the inclined wall as the speed of the ride increases. Knowing that the coefficient of static friction...
-
At an intersection car B was traveling south and car A was traveling 30 north of east when they slammed into each other. Upon investigation it was found that after the crash the two cars got stuck...
-
The deletion rules for enforcing referential integrity include both Delete. Cascade and Delete Restrict In general, what criteria should a DBA use in deciding whether to use a Delete: Cascade or...
-
What is metadata? if database administrators need to define metadata, what kind of language should they use (DDL or DML)? Why?
-
What is a relational database?
Study smarter with the SolutionInn App