A specialized automatic machine costs $300,000 and is expected to save $111,837.50 per year while in operation. Using a 12% interest rate, what is the discounted payback period?
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- Find the value of money (K) which can be withdrawn at the end of the 6th, 8th and 10th years, in order the value of the cash flow diagram shown below to be zero at the end of the 10th year. Find the value of (K) without trial-and-error method? The annual nominal interest rate is 12%. A1 = 400 A2 = 650 G = 45 61/27 71/2 81/2 9 91/2 A₁+7G A₂+6G A₁+5G A₂+4G A₂+3G A₁+2G 2 21/2 3 31/24 41/2 5 51/2 K A₂+G 1 11/2 K KFind the value of P in the following cash flow. i-5% per annum. ▲$1500 0 1 2 3 4 5 6 7 8 A₁-$1000 A₂-$800 interest rate (IR): 5% interest rate (IR): 5% n n A/F 1 1 1.0000 2 2 0.4878 3 3 0.3172 4 4 0.2320 5 5 0.1810 6 0.1470 7 0.1228 0.1047 9 0.0907 10 0.0795 6 7 8 9 10 single payment FIP PIF 1.0500 0.9524 1.1025 0.9070 1.1576 0.8638 1.2155 0.8227 1.2763 0.7835 1.3401 0.7462 1.4071 0.7107 1.4775 0.6768 1.5513 0.6446 1.6289 0.6139 uniform payment series A/P FIA 1.0500 1.0000 0.5378 2.0500 0.3672 3.1525 0.2820 4.3101 0.2310 5.5256 0.1970 6.8019 0.1728 8.1420 0.1547 9.5491 0.1407 11.0266 0.1295 12.5779 PIA 0.9524 1.8594 2.7232 3.5460 4.3295 5.0757 5.7864 6.4632 7.1078 7.7217How long will it take a sum of money to double at 11% annual percentage rate? ANSWER: 6.641
- A lathe for a machine shop costs P60, 000 if paid in cash, On the installment plan, a purchaser should pay P20, 000 down payment and 10 quarterly instaliments, the due at the end of the first year after purchase. If money is worth 15% compounded quarterly. The quarterly installments value is: A. 5.239.15 B. 4.439.18 C. 6.439.20Choose the best answer and provide a solution. Determine the accumulated amounts after 5 years of P1,000.00 invested at the rate of 10% compounded DAILY A. 1,628.90 B.1,645.31 C.1,648.61 D.1,610.51Maintenance cost of a machine is S 100 during the second year and to increase by $ 100 every year for the succeeding 5 years. What is the present value of the maintenance costs if the gradient to present equivalent conversion factor is equal to 32.18 ,the gradient to uniform series conversion factor is 4.59, the gradient to future equivalent conversion factor is 42.8? a. P 4,280 b. P 3,218 c. P 4,590 d. P 2,864
- You are paying $1,500 monthly for 10 years with an the interest rate of 12% compounded continuously, find the equivalent future lump sum amount at the end of 10 years? Select one: a. 480692 b. 410667 c. 364280 d. 600000 e. 3000006.53 George buys a car every 6 years for $18,000. He trades in his current car to count as the 20% down payment. The rest is financed at a nominal 12% in- terest with monthly payments over 6 years. When the loan is paid off, he trades in the car as the "20%" down payment on the next car, which he finances the same way. Jeanette has similar tastes in cars, and the dealer will count her trade-in vehicle as worth 20%. She has paid cash for old cars in the past, so she now has $14,400 in cash for the other 80% cost of a new car. In 6 years, her vehicle will be worth the "20%" down payment. She wants to make a monthly deposit so that she has the other 80% of the vehicle's cost in 6 years. Her savings account has a nominal annual interest rate of 6% with monthly compounding. What is George's payment? What is Jeanette's deposit? If Jeanette also deposits the difference in a retirement account that pays 9% nominal interest with monthly compounding, what does she have for retirement after 40…4-44 For a 10% interest rate, compute the value of n for the figure below. A = 1 1111111111 피 n=? F = 35.95
- What amount invested in a savings account that pays 8% interest annually is ?worth $215,892.50 after 1O yearsBawal Gumamit ng Excel( Don't use Excel) A small company purchased now for 1.15M will lose 75,000 each year for the first 4 years. An additional P400,000 invested in the company during the 4th year will result in a profit of 27,500 from the 5th year through the 15th year. At the end of 15 years, the company can be sold for 1.65M.a. Determine the IRR.b. Calculate FW if MARR is 12%/year.c. Calculate ERR ϵ = 12% per year.1. You have just been elected into the “Society of HonorableEngineers.” First-year dues are waived in honor of your election.Thus, your first-payment of $200 is due at the end of the year, andannual dues are expected to increase 3% annually. After 40 years of paying dues you become a life member and pay no more dues.Instead of paying annual dues, however, you can pay a one-time$2000 life membership fee. (a) Show the equation for determining the rate of return for buying alife membership. (b) What is the rate of return?