We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
A=$50000*(1.1)^3
=$50000*1.331
which is equal to
=$66,550.
You are considering purchasing a new company truck used for deliveries to customers in 3 years....
You are considering purchasing a new truck that will cost you S34,000. The dealer offers you 1.9% APR financing for 48 months (with payments made at the end of the month). Assuming you finance the entire $34,000 and finance through the dealer, your monthly payments will be closest to: OA. $708 B. $736 OC. $594 OD. $1086
Linkin Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $57,300. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $7,500. At the end of 8 years the company will sell the truck for an estimated $28,100. Traditionally the company has used a rule...
Starcups Coffee Company is launching a new sustainability initiative that would reward customers for purchasing a reusable cup. During the cup promotion, customers would pay an extra $1.00 for the reusable cup and would receive a 20% discount each time they return with the cup to buy a cup of coffee. Each week Starcups serves 50,000 customers who purchase an average of 2.50 cups of coffee per week (125,000 cups total). Starcups’s contribution margin income statement for a typical week...
A company is considering whether to buy a new machine, which costs $97,000. The cash flows (adjusted for taxes and depreciation) that would be generated by the new machine are given in the following table: Year Cash flow$50, 000 $40, 000 5,000 $20, 000 (a) Find the total present value of the cash flows. Treat each year's cash flow as a lump sum at the end of the year and use an interest rate of 12.5% per year, compounded annually....
Linkin Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $54,760. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $7,400. At the end of 8 years, the company will sell the truck for an estimated $27,000. Traditionally the company has used a rule...
Starcups Coffee Company is launching a new sustainability initiative that would reward customers for purchasing a reusable cup. During the cup promotion, customers would pay an extra $1.00 for the reusable cup and would receive a 25% discount each time they return with the cup to buy a cup of coffee. Each week Starcups serves 49,000 customers who purchase an average of 3.00 cups of coffee per week (147,000 cups total) Starcups's contribution margin income statement for a typical week...
help Grouper Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $53.040. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $7.800. At the end 8 years, the company will sell the truck for an estimated $29,500. Traditionally the company has used a rule...
Starcups Coffee Company is launching a new sustainability Initiative that would reward customers for purchasing a reusable cup During the cup promotion, customers would pay an extra $1.00 for the reusable cup and would receive a 20% discount each time they return with the cup to buy a cup of coffee Each week Starcups serves 56,000 customers who purchase an average of 2.00 cups of coffee per week (112,000 cups total). Starcups's contribution margin Income statement for a typical week...
Exercise 16-1 Bridgeport Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $57,400. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $7,800. At the end of 8 years, the company will sell the truck for an estimated $28,100. Traditionally the company has used...
Starcups Coffee Company is launching a new sustainability initiative that would reward customers for purchasing a reusable cup. During the cup promotion, customers would pay an extra $1.00 for the reusable cup and would receive a 20% discount each time they return with the cup to buy a cup of coffee. Each week Starcups serves 51,000 customers who purchase an average of 2.50 cups of coffee per week (127,500 cups total). Starcups's contribution margin income statement for a typical week...