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The Keraniganj Investments Ltd. is considering investing in of the three mutually exclusive projects. It
seeks your suggestion as to which of the three projects should be chosen. The company expects to earn a
10% rate of return on all of its investments. The initial outlay and subsequent inflows associated with the
projects are as follows:
Year Project A Project B Project C
0 (1,000,000) (1,000,000) (1,000,000)
1 300,000 100,000 500,000
2 300,000 200,000 400,000
3 300,000 300,000 300,000
4 300,000 400,000 200,000
5 300,000 500,000 100,000
Required:
Suggest the company as to which of the three projects should be chosen, based on the following methods:
1. Payback period
2. Discounted payback period
3. Net present value
4. Profitability index
5. Internal rate of return
6. Modified internal rate of return
Mrs mhlauli purchases a new dining table from Bradley , placing an immediate deposit of R2000 and agreeeing to make monthly repayment of R240 for next 5 years.if the annual interest rate is 6% compounded monthly. What is equivalent cash price of the dining room
Consider Bond F250
Coupon rate (half yearly) 10,5% per year
Yield to maturity 7,955% per year
Maturity date 8 October 2054
Settlement date 29 May 2021
The all-in-price is [1] R129,73733%. [2] R126,13814%. [3] R123,49852%. [4] R134,98733%. [5] R131,24248%
The monthly expenses of Agoode restaurant for the month of march were as follows;
Food and beverage cost -$4000.00
Salaries for five workers - $750.00
Overhead cost-$500.00
Calculate; (i)the monthly gross profit if the total revenue is $8000.00
(ii) the monthly net profit.
If you deposit $10,000 in a bank account that pays 10% interest annually, how much will
be in your account after 5 years?
Since the birth of his daughter, 17 years ago, Derek has deposited $150.00 at the beginning of every month into an RESP. The interest rate on the plan was 3.60% compounded monthly for the first 9 years and 4.40% compounded monthly for the next 8 years.
Find the amount by which the compound interest is larger than the simple interest. Round to the nearest cent.
Principal: $7825 Rate: 6% Years: 7
