The future worth:-
= P(F/P,i,n)*income tax rate
5000*(F/P,8%,45)*(1-0.30)
5000*31.92045*(0.70)
111721.573
= 111722
A $5,000 balance in a tax-deferred savings plan will grow to $159,602.00 in 45 years at...
A $6,000 balance in a tax-deferred savings plan will grow to $20,397.60 in 21 years at an 6 % per year interest rate. What 5 would be the future worth if the $6,000 had been subject to a 23 % income tax rate? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 6 % per year The future worth would be $ (Round to the nearest dollar.) 8: More Info Discrete Compounding:...
I Pluvien 444 (diyor ) The Stafford plan now offers student loans at 5% annual interest. After two years the interest rate will increase to 7% per year. If you borrow $5,000 now and $5,000 each year thereafter for a total of four installments of $5,000 each, how much will you owe at the end of year 4? Interest is compe the end of each year. Click the icon to view the interest and annuity table for discrete compounding when...
Compare alternatives A and B with the present worth method if the MARR is 11% per year. Which one would you recommend? Assume repeatability and a study period of 12 years. $25,000 $10,000 at end of year 1 and increasing by $1,000 per year thereafter None Capital Investment Operating Costs $55,000 $5,000 at end of year 1 and increasing by $500 per year thereafter $5,000 every 3 years 12 years $10,000 if just overhauled Overhaul Costs Life 6 years negligible...
Compare alternatives A and B with the present worth method if the MARR is 10% per year. Which one would you recommend? Assume repeatability and a study period of 20 years $15,000 $45,000 Capital Investment Operating Costs $4,000 at end of year 1 and increasing by $400 per year thereafter $4,000 every 5 years 20 years $8,000 at end of year 1 and increasing by $800 per year thereafter None Overhaul Costs Life 10 years Salvage Value $8,000 if just...
Problem 4-20 (algorithmic) Question Help men udel Compound interest is a very powerful way to save for your retirement. Saving a little and giving it time to grow is often more effective than saving a lot over a short period of time. To illustrate this, suppose your goal is to save $1 million by the age of 64. What amount of money will be saved by socking away $4,540 per year starting at age 26 with an 8% annual interest...
EOY 0 1 2 3 4 5 6 96 97 98 99 100 550 550 550 1,100 1,100 1,650 1,650 2,200 2.2001 2,750 2,750 Problem 5-5 (algorithmic) What is the capitalized worth of a project that has an indefinitely long study period and dollar cash flows that repeat as diagram. The interest rate is 18% per year. Click the icon to view the diagram for cash flows. Click the icon to view the interest and annuity table for discrete compounding...
Your firm is thinking about investing $200,000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $36,000 in year one and then increasing by $12,000 more each year thereafter. Relevant expenses will be $10,000 in year one and will increase by $5,000 per year until the end of the cell's five-year life. Salvage recovery at the end of year five is estimated to be $9,000. What is the annual equivalent worth of the...
Solve for A and B, Engineering Economy
please solve it right!
Question Help %) Problem 6-52 (algorithmic) Compare alternatives A and B with the present worth method if the MARR is 15% per year. Which one would you recommend? Assume repeatability and a study period of 20 years. $40,000 $7,000 at end of year 1 and increasing by $700 per year thereafter $7,000 every 5 years $15,000 $14,000 at end of year 1 and increasing by $1,400 per year thereafter...
Determine the FW of the following engineering project when the MARR is 17% per year. Is the project acceptable? a A negative market value means that there is a net cost to dispose of an asset. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 17% per year. The FW of the following engineering project is $. (Round to the nearest dollar.)
A construction company is considering acquiring a new earthmover. The purchase price is $110,000, and an additional $25,000 is required to modify the equipment for special use by the company. The equipment falls into the MACRS seven-year classification (the tax life), and it will be sold after five years (the project life) for $50,000 The purchase of the earthmover will have no effect on revenues, but the machine is expected to save the firm $68,000 per year in before-tax operating...