A Firm needs to replace most of its machinery in five years at a cost of...
A Firm needs to replace most of its machinery in five years at a cost of $500,000. The company wishes to create a sinking fund to have this money available in five years. How much should the quarterly deposits be if the fund earns 8%? Use MS-Excel to illustrate the accumulation of funds over the five year period.
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A Firm needs to replace most of its machinery in five years at a
cost of...
5) An assembly plant anticipates needing to replace some of its machinery in 4 years, at...
5) An assembly plant anticipates needing to replace some of its machinery in 4 years, at a current cost of $2 million. The company expects annual inflation of 3%. It also believes it can earn an 8% return on its money, compounded quarterly. How much money would the company have to put into an account now in order to have the anticipated future cost of the machinery available to withdraw at the end of 4 years? 6) (10%) What is...
Chuck needs to purchase a piece of machinery in 10 years. The item costs $1,800 today...
Chuck needs to purchase a piece of machinery in 10 years. The item costs $1,800 today but its price inflates 4% per year. He will also have to pay sales tax of 7% on the purchase. To finance the purchase, Chuck deposits $50 into an account at the beginning of each quarter for the next 10 years. The effective annual interest rate is 6.5%. a) Will the balance of the fund be sufficient to purchase the piece of machinery in...
ASAP PLEASE Q4. A travel agency must replace its computers every five years at a cost...
ASAP PLEASE
Q4. A travel agency must replace its computers every five years at a cost of $50000. At a rate of 6% interest calculate (a) The total size of the fund if $500 is deposited at the beginning of each month. (3 marks) (b) The size of the quarterly deposit required to meet the $50,000 target.
2. An accounting firm will need $17,000 in 5 years to replace its computer system. What...
2. An accounting firm will need $17,000 in 5 years to replace its computer system. What periodic deposits to a sinking fund paying quarterly interest at a 9% annual rate will achieve that goal? Mary have saving plan with replacement rate equal to 75% of her preretirement income $60,000.00. She expect to live 15 years after retiring at age 65 and her age now is 40 years. If the real interest rate is 3% then a. What will be her...
13-34 Five years ago, Thomas Martin installed production machinery that had a first cost of $25,000....
13-34 Five years ago, Thomas Martin installed production machinery that had a first cost of $25,000. At that A time initial yearly costs were estimated at $1250, increasing by $500 each year. The market value of this machinery each year would be 90% of the pre- vious year's value. There is a new machine available now that has a first cost of $27,900 and no yearly costs over its 5-year minimum cost life. If Thomas Martin uses an 8% before-tax...
1. Suppose you accumulated $500,000, perhaps from many years of saving. You put the money in...
1. Suppose you accumulated $500,000, perhaps from many years of saving. You put the money in a savings plan earning 6% compounded monthly. If you want to withdraw $4,000 at the beginning of each month, how long before the savings plan is exhausted? 2. Suppose you accumulated $500,000, perhaps from many years of saving. You put the money in a savings plan earning 6% compounded monthly. If you want the plan to last 40 years, how much can you withdraw...
1. You won $100 000 in a lottery and you want to set some of that...
1. You won $100 000 in a lottery and you want to set some of that sum aside for 10 years. After 10 years, you would like to receive $2400 at the end of every 3 months for 8 years. How much of your winnings must you set aside if interest is 5.5% compounded quarterly? 2. A sum of money is deposited at the end of every month for 10 years at 7.5% compounded monthly. After the last deposit, interest...
Cheyenne Inc. has $532,750 to invest. The company is trying to decide between two alternative uses...
Cheyenne Inc. has $532,750 to invest. The company is trying to decide between two alternative uses of the funds. One alternative provides $70,693 at the end of each year for 12 years, and the other is to receive a single lump-sum payment of $1,672,000 at the end of the 12 years. Which alternative should Cheyenne select? Assume the interest rate is constant over the entire investment. e Textbook and Media Cheyenne Inc. has completed the purchase of new Dell computers....
Answer the following questions related to Shamrock Inc. (For calculation purposes, use 5 decimal places as displayed in...
Answer the following questions related to Shamrock Inc. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Shamrock Inc. has completed the purchase of new Surface computers. The fair value of the equipment is $471,625. The purchase agreement specifies an immediate down payment of $100,000 and semiannual payments of $24,788 beginning at the end of 6 months for 9 years. What is the interest rate, to the nearest percent, used in discounting this purchase transaction?...
In five years your oldest child will be in 8th grade, at which point you and...
In five years your oldest child will be in 8th grade, at which point you and your family plan to vacation in Europe. You estimate that you will need $20,000 for the trip. How much do you need to set aside today if you can place your money in an investment vehicle earning an average of 4.50% per year? Four years ago, Robert's annual salary was $52,500. Today, he earns $73,800. What has been the average annual rate of growth...
ASAP PLEASE
Q4. A travel agency must replace its computers every five years at a cost of $50000. At a rate of 6% interest calculate (a) The total size of the fund if $500 is deposited at the beginning of each month. (3 marks) (b) The size of the quarterly deposit required to meet the $50,000 target.
2. An accounting firm will need $17,000 in 5 years to replace its computer system. What periodic deposits to a sinking fund paying quarterly interest at a 9% annual rate will achieve that goal? Mary have saving plan with replacement rate equal to 75% of her preretirement income $60,000.00. She expect to live 15 years after retiring at age 65 and her age now is 40 years. If the real interest rate is 3% then a. What will be her...
13-34 Five years ago, Thomas Martin installed production machinery that had a first cost of $25,000. At that A time initial yearly costs were estimated at $1250, increasing by $500 each year. The market value of this machinery each year would be 90% of the pre- vious year's value. There is a new machine available now that has a first cost of $27,900 and no yearly costs over its 5-year minimum cost life. If Thomas Martin uses an 8% before-tax...
1. You won $100 000 in a lottery and you want to set some of that sum aside for 10 years. After 10 years, you would like to receive $2400 at the end of every 3 months for 8 years. How much of your winnings must you set aside if interest is 5.5% compounded quarterly? 2. A sum of money is deposited at the end of every month for 10 years at 7.5% compounded monthly. After the last deposit, interest...
Cheyenne Inc. has $532,750 to invest. The company is trying to decide between two alternative uses of the funds. One alternative provides $70,693 at the end of each year for 12 years, and the other is to receive a single lump-sum payment of $1,672,000 at the end of the 12 years. Which alternative should Cheyenne select? Assume the interest rate is constant over the entire investment. e Textbook and Media Cheyenne Inc. has completed the purchase of new Dell computers....
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