Texts:
40. A 3-year project is being evaluated using a discount rate of 5%. It is expected to receive GH40,000 at the end of its 2nd year and GH40,000 at the end of its third year. What is the present value of the future cash flows?
A. GHc 288,530
B. GHc 97,078
C. GHc 259,036
D. GHC 104,578
41. What is the present value of GH10,000 received today and invested at 4% compound interest?
A. GHc 9,600
B. GHc 11,699
C. GHc 11,600
D. GHc 10,400
42. The amount of money that Zeta Construction Ltd can spend now improving 12% per year is closest to:
A. GHc 15,700
B. GHc 17,800
C. GHc 19,300
D. GHc 21,350
43. A small construction company is considering the purchase of a used bulldozer for GH61,000. If the company purchases the bulldozer now, the equivalent future amount in year 4 that the company is paying for the dozer at 4% per year interest is closest to:
A. GHc 52,143
B. GHc 65,461
C. GHc 71,365
D. Over 72,000
44. The cost of lighting and maintaining an airport control tower equipment is GH90,000 per year. At the interest rate of 10% per year, the present worth of maintaining the equipment for 10 years is closest to:
A. GHc 1,015,000
B. GHc 894,000
C. GHc 712,000
D. GHc 553,000
45. An enthusiastic new building technology graduate plans to start a construction firm by borrowing GH100,000 at 10% per year interest. The loan payment each year to pay off the loan in 7 years is closest to:
A. GHc 18,745
B. GHc 20,540
C. GHc 22,960
D. GHc 23,450