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Asked you to prepare a Present worth calculation adjusted for inflation for the next 3 dicts infl...
Find the present worth of earthmoving equipment that has a first cost today of $143,000, an annual operating cost o...
Find the present worth of earthmoving equipment that has a first cost today of $143,000, an annual operating cost of $56,000, and a salvage value of 20% of the first cost after 5 years, these estimates being in future dollars. Assume that the real interest rate is 12% per year and that inflation has averaged 6% per year. Solve with inflation (a) not accounted for and (b) accounted for a) The present worth with inflation not accounted for is $...
Develop a spreadsheet to determine the next present value or present worth of the following proje...
Develop a spreadsheet to determine the next present value or present worth of the following project: Investment: 170,000 Revenue/Savings: 32,000 Incremental Expense/Cost: 6,000 Salvage Value: 20,000 Project Life: 10 years MACRS Schedule: 7 years Tax Rate: 24% MARR: 12% Inflation: 3% Complete this on the basis of a real dollars basis rather than actual dollars. Is this a good investment to make? Year Percent 1 14.29% 2 24.49% 3 17.49% 4 12.49% 5 8.93% 6 8.92% 7 8.93% 8 4.46%
assume the inflation rate 6% per year and the real interest rate is 5%. A)the number...
assume the inflation rate 6% per year and the real interest rate is 5%. A)the number of future dollars after 5 years that will be equivalent to 30000 calculating first real dollar equivalence (constant value dollars) B) The number of future dollars after 5 years that will be equivalent 30000 market interest rate ?
Problem (5): An investment pays $ 30,000 after five years. a) If the annual inflation rate...
Problem (5): An investment pays $ 30,000 after five years. a) If the annual inflation rate is 8%, what is the real value of the $30,000 in today's dollars? b) If the annual inflation rate is 8% and the real interest rate is 12%, what is the present worth of the investment return? c) What Actual-dollar interest rate is equivalent to a real interest rate of 12% when the annual inflation rate is 8% d) Compute the present worth using...
Q007 Future Value -Present Value 1 a. Suppose that the inflation rate is 3.8% (which means that the overall level of prices is rising 3.8% a year). How many years will it take for the overall level o...
Q007 Future Value -Present Value 1 a. Suppose that the inflation rate is 3.8% (which means that the overall level of prices is rising 3.8% a year). How many years will it take for the overall level of prices to double? Solution: We want to find the number of years it will take for $1 worth of goods or services to cost $2. Think of $1 as the present value and $2 as the future with an interest rate of...
4.54 What is the future worth in year 8 of a present sum of $50,000 if...
4.54 What is the future worth in year 8 of a present sum of $50,000 if the interest rate is 10% per year in years 1 through 4 and 1% per month in years 5 through 8?
What is the future worth 8 years from now of a present cost of 175,000 at...
What is the future worth 8 years from now of a present cost of 175,000 at an interest rate of 0.04 per year?
Question 1 If you know the future value or worth of something and would like to...
Question 1 If you know the future value or worth of something and would like to know what its present value or worth is, which interest factor could you use? Present worth factor for a uniform series Capital recovery factor Present worth factor for a single payment Compound amount factor Question 2 If you are given a series of payments into the future and want to know their present value or worth, what is the best interest factor to use?...
9 An investor wants a real rate of return i' of 10% per year. If the expected annual inflation rate for the next severa...
9 An investor wants a real rate of return i' of 10% per year. If the expected annual inflation rate for the next several years is 3.5%, what interest rate i should be used in project analysis calculations? 10 Inflation has been a reality for the general economy of the U.S. in many years. Given this assumption. Calculate, the number of years it will take for the purchasing power of today's dollars to equal one-third of their present value. Assume...
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in...
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...
Find the present worth of earthmoving equipment that has a first cost today of $143,000, an annual operating cost of $56,000, and a salvage value of 20% of the first cost after 5 years, these estimates being in future dollars. Assume that the real interest rate is 12% per year and that inflation has averaged 6% per year. Solve with inflation (a) not accounted for and (b) accounted for a) The present worth with inflation not accounted for is $...
Problem (5): An investment pays $ 30,000 after five years. a) If the annual inflation rate is 8%, what is the real value of the $30,000 in today's dollars? b) If the annual inflation rate is 8% and the real interest rate is 12%, what is the present worth of the investment return? c) What Actual-dollar interest rate is equivalent to a real interest rate of 12% when the annual inflation rate is 8% d) Compute the present worth using...
Q007 Future Value -Present Value 1 a. Suppose that the inflation rate is 3.8% (which means that the overall level of prices is rising 3.8% a year). How many years will it take for the overall level of prices to double? Solution: We want to find the number of years it will take for $1 worth of goods or services to cost $2. Think of $1 as the present value and $2 as the future with an interest rate of...
4.54 What is the future worth in year 8 of a present sum of $50,000 if the interest rate is 10% per year in years 1 through 4 and 1% per month in years 5 through 8?
What is the future worth 8 years from now of a present cost of 175,000 at an interest rate of 0.04 per year?
9 An investor wants a real rate of return i' of 10% per year. If the expected annual inflation rate for the next several years is 3.5%, what interest rate i should be used in project analysis calculations? 10 Inflation has been a reality for the general economy of the U.S. in many years. Given this assumption. Calculate, the number of years it will take for the purchasing power of today's dollars to equal one-third of their present value. Assume...
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...
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