Question

Problem 1 For the following table (a) Draw the cash flow diagram Receipts Year 0 1 2 Disbursements $50,000 $15,000 $15,000 2 S5.000 System Initial Costs Produced Products Produced Products Preventive Maintance Produced Products Corrective Maintance Produced Products Preventive Maintance Produced Products Salvage value $15,000 $15,000 $15,000 $5,000 4 5 5 6 $15,000 $25,000 Problem 2 $1000 is deposited in a savinga account that pays 6% annual interest, and no money is withdrawn for three years. Most nearly, what is the account balance after 3 years? Problem 3 A company pays off a loan of $1,600,000 ny paying the same amount at the end of each year for 20 years. The annula interest rate on the loan is 3.3%. Most nearly, what is the annual payment? Problem 4 A computer with a useful life of five years has an intial cost of $6000. The salvage value is $2300, and the annual maintenance is $210/yr. The interest rate is 8%. What is most nearly the present value of the costs for the computer?

please help..

Answer 1

Cash Flow Diggram: Date : 1 Page $15,000 $15,000 $15,000 TIS.000 15.000 25000 $5000 15000 85000 $50,000 deposited Today 2830 $ 1000 Anexo or 2 6 % per ammum 1000 x (1 + 0.06 Accoumr belome agree 3 years 2) a 1000 x 1.191016 $ 1191.016 Ammuel Payment Armount o loom Paid Pelesenk valuó Amuity facioro 20yeoses @ 3.3% ammually $16,00,000 PVAF @ 3.3% for 20 you $1600000 $ 110,550 per yees 14.47308

Present Value Factor table is provided below:-

Year Present Value Factor of 3.3% 0.96805 0.93713 0.90719 0.87821 0.85016 0.82300 0.79671 0.77125 0.74662 0.72276 0.69968 0.67732 0.65569 0.63474 0.61446 0.59483 0.57583 0.55743 0.53963 0.52239 14.47308 15 16 17 18 19 20 Total

4. Present Value = Future Value / (1+i)^n, where "i" is annual interest rate and "n" is number of years.

210 + 210 (17.08)3 07.0834 Present value of 210 210 Ammual 02 (17.08)' *(1+-08)2 Maintenance + 210 (7.0875 3 $838.47

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