HW21_Solution

1/25/24, 11:43 AM Assignment Print View https://ezto.mheducation.com/hm.tpx 1/7 1. Award: 5.00 points The Department of Traffic Security of a city is considering the purchase of a new drone for aerial surveillance of traffic on its most congested streets. A similar purchase 4 years ago cost $1,425,000. At an interest rate of 7.00% per year, what is the equivalent value today of the previous $1,425,000 expenditure? (Round the final answers to three decimal places.) The equivalent value today is $ 1867884.314 ± 2% . Explanation: The equivalent value today is $1867884.314. References Numeric Response Difficulty: Easy Chapter: 02 Factors: How Time and Interest Affect Money Section: 02.01 Single-Amount Factors (F/P and P/F) p 1425K i 7 n 4 F

1/25/24, 11:43 AM Assignment Print View https://ezto.mheducation.com/hm.tpx 2/7 2. Award: 5.00 points Calculate the present worth of 16.00 uniform payments of $6,600 that begin 1 year from now at an interest rate of 12.00% per year. (Round the final answer to three decimal places.) The present worth is $ 46028.309 ± 2% . Explanation: The present worth is $46028.309. References Numeric Response Difficulty: Easy Chapter: 02 Factors: How Time and Interest Affect Money Section: 02.01 Single-Amount Factors (F/P and P/F) P n 16 A 6.6k i 12 P A PA 1611 吵

1/25/24, 11:43 AM Assignment Print View https://ezto.mheducation.com/hm.tpx 4/7 4. Award: 10.00 points Labco Scientific sells high-purity chemicals to universities, research laboratories, and pharmaceutical companies. The company wants to invest in new equipment that will reduce shipping costs by better matching the size of the completed products with the size of the shipping container. The new equipment is estimated to cost $600,000 to purchase and install. How much must Labco save each year for 4.00 years in order to justify the investment at an interest rate of 12.00% per year? (Round the final answer to three decimal places.) Labco must save $ 197540.662 ± 2% each year. Explanation: Labco must save $197540.662 each year. References Numeric Response Difficulty: Easy Chapter: 02 Factors: How Time and Interest Affect Money Section: 02.01 Single-Amount Factors (F/P and P/F)

1/25/24, 11:43 AM Assignment Print View https://ezto.mheducation.com/hm.tpx 5/7 5. Award: 10.00 points Henry Mueller Supply Co. sells vibration control equipment for wind turbines exposed to harsh environmental factors. Annual cash flows for an 8-year period are shown in the table. Determine the future worth of the cash flows at an interest rate of 11.00% per year. Year 1 2 3 4 5 6 7 8 Revenue, $1000 275.0 275.0 275.0 275.0 275.0 275.0 275.0 275.0 Expenses, $1000 80.0 80.0 80.0 80.0 80.0 80.0 80.0 80.0 (Round the final answer to three decimal places.) The future worth of the cash flows is $ 2312589.683 ± 2% . Explanation: The future worth of the cash flows is $2312589.683. References Numeric Response Difficulty: Medium Chapter: 02 Factors: How Time and Interest Affect Money Section: 02.01 Single-Amount Factors (F/P and P/F) F A 275K 80K i 11 n 8

1/25/24, 11:43 AM Assignment Print View https://ezto.mheducation.com/hm.tpx 7/7 7. Award: 10.00 points The cost of a fence that can detect poacher intrusion into a National Wildlife Preserve is $2.600 million per mile. If the effective life of the fence is 9.00 years, determine the equivalent annual cost of a/an 8.00-mile long fence at an interest rate of 10.00% per year. (Round the final answer to three decimal places.) The equivalent annual cost is $ 3611723.213 ± 2% . Explanation: The equivalent annual cost is $3611723.213. References Numeric Response Difficulty: Medium Chapter: 02 Factors: How Time and Interest Affect Money Section: 02.01 Single-Amount Factors (F/P and P/F)