478978810

28.10.2019 • 

Business

(compound value) the aggarwal corporation needs to save $13 million to retire a $13 million mortgage that matures in 13 years. to retire this mortgage, the company plans to put a fixed amount into an account at the end of each year for 13 years, with the first payment occurring at the end of 1 year. the aggarwal corporation expects to earn 13 percent annually on the money in this account. what equal annual contribution must it make to this account to accumulate the $ 13 million in 13 years? in order to retire a $13 million mortgage that matures in 13 years, what equal end-of-year contribution must the aggarwal corporation make to an account that earns 13 percent annually?

Ответ:

105001038

27.04.2023

Business

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NPV of $2,165.18

Explanation:

The first basic method of evaluating a project is through Net Present value Method

Here, Present Value of cash outflow = $36,000

Present value of cash inflow at the discount rate of 10%

Present value discount rate factor for 4 years = 3.169865

Cash inflow each year = $12,040

Present value of inflow for 4 years = $12,040 3.169865

= $38,165.18

Net Present Value = PV of cash inflow - PV cash outflow = $38,165.18 - $36,000 = $2,165.18

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