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    Group Activity 5

    Uploaded by

    Jeremy James Albay
    1. The document contains 8 multiple choice questions about financial concepts such as compound interest, present value, and cash flows. 2. The questions are divided into teams for Honey, Al, Angel, and Mico and cover topics like calculating interest earned over several years, determining the present value of a cash flow stream, and comparing payment schedules for machines. 3. The correct answers to the questions are letters A-D.

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    © All Rights Reserved
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    Group Activity 5

    Uploaded by

    Jeremy James Albay
    338 views2 pages
    1. The document contains 8 multiple choice questions about financial concepts such as compound interest, present value, and cash flows. 2. The questions are divided into teams for Honey, Al, Angel, and Mico and cover topics like calculating interest earned over several years, determining the present value of a cash flow stream, and comparing payment schedules for machines. 3. The correct answers to the questions are letters A-D.

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    Group-Activity-5

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    1. The document contains 8 multiple choice questions about financial concepts such as compound interest, present value, and cash flows. 2. The questions are divided into teams for Honey, Al, Angel, and Mico and cover topics like calculating interest earned over several years, determining the present value of a cash flow stream, and comparing payment schedules for machines. 3. The correct answers to the questions are letters A-D.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    338 views2 pages

    Group Activity 5

    Uploaded by

    Jeremy James Albay
    1. The document contains 8 multiple choice questions about financial concepts such as compound interest, present value, and cash flows. 2. The questions are divided into teams for Honey, Al, Angel, and Mico and cover topics like calculating interest earned over several years, determining the present value of a cash flow stream, and comparing payment schedules for machines. 3. The correct answers to the questions are letters A-D.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    HONEY’S TEAM

    1. Mrs. Vinco deposited P5,000 in an accounts paying interest of 4% compounded annually. What
    amount will be in the account at the end of 4 years?
    A. P5,849
    B. P5,800
    C. P5,200
    D. 5,100
    2. Colimbo Company is considering an investment which will return a P1,000,000 six years from
    now. What amount should Colimpo Company pay for this investment to earn an 11% return?
    A. P550,8000
    B. P644,780
    C. P534,640
    D. P1,000,000

    AL’S TEAM

    3. In order to buy his brothers marriage gift, a Subaru XV, Vincent will save half of his annual
    allowance of P50,000 at the end of each year for the next nine years in a bank which pays 13%
    interest. How much will be in his account after ninth year?
    A. P770,784
    B. P812,212
    C. P385,392
    D. P392,051
    4. In the previous number, what if Vincent will save his money at the beginning of each years in a
    bank which pays 13% interest. How much will be in his account after ninth year?
    A. P770,784
    B. P812,212
    C. P385,392
    D. P392,051

    ANGEL’S TEAM

    5. To pay for her dream Prada bag, Rica is saving P7,500 at the beginning of each year for the next
    eight years in a bank account paying 10 percent interest. How much will Rica have in that
    account at the end of 8th year?
    A. P92,085
    B. P94,346
    C. P103,609
    D. P105,500
    6. In this previous number, what if Rica will save her money at the end year for the next eight
    years?
    A. P79,343
    B. P76,667
    C. P85,769
    D. P86,500

    MICO’S TEAM

    7. What is the present value of the following cash flow stream at a rate of 11%?

    Year Net cash flow

    1 1,000

    2 2,000

    3 3,500

    4 4,000

    A. 9,699
    B. 7,718
    C. 7,781
    D. 8,787

    8. You are considering the purchase of new machine for your company and you have narrowed
    down the possibilities to two machines which perform equally well. However the method of
    paying for the two machines is different. Machine A requires 2,000 per year payment for the
    next four years. Machine B requires the following payment schedule.

    Year Net cash flow


    1 1,000
    2 2,000
    3 2,000
    4 1,500

    Which machine should you buy if your opportunity cost is 8 percent?


    A. Machine A
    B. Machine B
    C. Both Machine
    D. Cannot be determined.

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