The GEM Company just purchased upgraded CAD software for $20,000 now and annual payments of $600 per year for 10 years starting 3 years from now for annual upgrades. What is the present worth in year 0 of the payments if the interest rate is 6% per year? solve it in Excel, shoe formula
The GEM Company just purchased upgraded CAD software for $20,000 now and annual payments of $600...
slove it in excel , show formula The GEM Company just purchased upgraded CAD software for $20,000 now and annual payments of $600 per year for 10 years starting 3 years from now for annual upgrades. What is the present worth in year 0 of the payments if the interest rate is 6% per year? solve it in
3.10 A company purchased new equipment for $250,000 now, that will require annual operations and maintenance (O&M) costs of $30,000 per year for 5 years starting 3 years from now. What is the present worth of these costs if the interest rate is 8% per year?
1. Suppose that you will receive annual payments of $20,000 for a period of 10 years. The first payment will be made 5 years from now. If the interest rate is 5%, what is the present value of this stream of payments? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 2. The $47.5 million lottery payment that you have just won actually pays $1.9 million per year for 25 years. The interest rate is 10%. a....
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in year 1 and annual increases of 8% per year for 10 years. Use an interest rate of 8% per year. (10 points) Pg=. 2 - 8v. Sop VVVV. 72 70 Now $s < 4. The equivalent present worth of a geometric gradient series of cash flows for 10 years was found to be $19,776. If the interest rate was 15% per year and the...
b. If the company makes the first deposit one year from now, how much should each deposit be? 3. A start-up internet service provider expects to lose money in each of the first four years. Losses are projected to be $50 million in year one, $40 million in year two, $30 million in year three and $20 million in year four. An interest rate of 10% per year is used. a. What is the present worth of the losses for...
Blue spruce Corp. has just purchased equipment that requires annual payments of $55,000 to be paid at the end of each of the next 4 years. The appropriate discount rate is 10%. What is the present value of the payments A. 174343 B. 220144 C. 107119 D. 210279
You have just won a $5 million lottery to be received in twenty annual equal payments of $250,000. What will happen to the present value of your winnings if the interest rate increases during the next 20 years? It will be worth less. It will be worth more. It will not change It will increase during the first ten years.
15). 15) John's Auto Repair just obtained an interest-only loan of $35,000 with annual payments for 10 years and an interest rate of 8 percent. What is the amount of the loan payment in Year 8? A) $4,280.00 S D B) $4.918.07 SWEDE C) $5,216.03 D) $2,800.00 E) $5,211.06 16) _ 16) Four years ago, Saul invested $500. Three years ago, Trek invested $600. Today, these two investments are each worth $800. Assume each account continues to earn its respective...
Just construct the cash flow diagram please Problem 3 (20 Points Total) Determine the equivalent annual worth for years 1 through 10 of a uniform series of payments of $20,000 that begins in year 3 and ends in year 10. Use an interest rate of 10% per year. Draw the cash flow diagram and describe the steps you are taking.
A company purchased equipment and signed a 4-year installment loan at 6% annual interest. The annual payments equal $11,200. The present value for an annuity (series of payments) at 6% for 4 years is 3.4651. The present value of 1 (single sum) for 4 years at 6% is 7921. The present value of the loan is: Multiple Choice $11,200. $8,872. $14,140 $44.800 $38,809