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3. A company has received a machine paying $150,000. The annual operating costs of this machine are given in the table below. If the annual compound interest rate is 30%, a) calculate the present worth of the cost of this machine together with its annual operating cost. b) calculate the future worth of the cost of this machine together with its annual operating cost. Year Operating Costs 1 500 1650 3 1 800 2 000 5 2 500 6 2 500 7 2 500 8 2 500 9 2 500 10 2 500

3. A company has received a machine paying $150,000. The annual operating costs of this machine are given in the table below. If the annual compound interest rate is 30%, a) calculate the present worth of the cost of this machine together with its annual operating cost. b) calculate the future worth of the cost of this machine together with its annual operating cost. Year Operating Costs 1 500 1650 3 1 800 2 000 5 2 500 6 2 500 7 2 500 8 2 500 9 2 500 10 2 500

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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3. A company has received a machine paying $150,000. The annual operating costs of this machine are given in the table below. If the annual compound interest rate is 30%, a) calculate the present worth of the cost of this machine together with its annual operating cost. b) calculate the future worth of the cost of this machine together with its annual operating cost. Year Operating Costs 1 500 2 1 650 3 1 800 4 2 000 2 500 6. 2 500 7 2 500 2 500 2 500 10 2 500
Transcribed Image Text:3. A company has received a machine paying $150,000. The annual operating costs of this machine are given in the table below. If the annual compound interest rate is 30%, a) calculate the present worth of the cost of this machine together with its annual operating cost. b) calculate the future worth of the cost of this machine together with its annual operating cost. Year Operating Costs 1 500 2 1 650 3 1 800 4 2 000 2 500 6. 2 500 7 2 500 2 500 2 500 10 2 500
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