A company needs a new mechanical device. Compute the present worth for thesemutually exclusive alternatives. Identify which you would recommend and why forgiven i-10% per year. The company uses 8-year planning horizon.Initial CostAnnual CostsSalvage ValueLifeAlternative A$4000$500$10004 yearsAlternative B$5000$600$5008 year:

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Answered: A company needs a new mechanical…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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SALARY COMPARISONS A Stenton Printing Co. employee taking an annual raise of 8%/year for the next 4 years or a whose current annual salary is $48,000 has the option of 4 fixed annual raise of $4000/year. Which option would be more profitable to him considering his total earnings over the 4-year period?
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O Macmillan Learning Credit card companies earn a percentage of the amount charged on their credit cards, paid by the stores that accept the card. A credit card company compares two proposals for increasing the amount that its customers charge on their credit cards. Proposal 1 offers to eliminate the annual fee for customers who charge $1800 or more during the year on their card. Proposal 2 offers a small percentage of the total amount charged as a cash reward at the end of the year. The credit card company offers each proposal to an SRS of 100 of its existing customers. At the end of the year, the total amount charged by each customer is recorded. The table displays the summary statistics. Group Proposal 1 Proposal 2 n 100 OP = 0.1629 100 X $1319 $1372 S $261 $274 Calculate the two-sample t statistic. Give your answer to three decimal places. Find the P-value using Option 2 and Table C. Select the choice that correctly represents the P-value.
AMDM Spring 2021 - Unit 6 - Finance and Decision- 6 of 1 O Help Nicole deposited $4,400 into a savings account earning 6% interest compounded quarterly. If she makes no other deposits or withdrawals, how much interest will have accumulated after 5 years. A. $1,526.16 B. $3,782.23 C. $2,332.60 D. $5,926.16
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Tower Distributors provides logistical services to local manufacturers. Tower picks up products from the manufacturers, takes them to its distribution center, and then assembles shipments to retailers in the region. Tower needs to build a new distribution center; consequently, it needs to make a decision on how many trucks to use. The monthly amortized capital cost of ownership is $2,100 per truck. Operating variable costs are $1 per mile for each truck owned by Tower. If capacity is exceeded in any month, Tower can rent trucks at $2 per mile. Each truck Tower owns can be used 10,000 miles per month. The requirements for the trucks, however, are uncertain. Managers have estimated the following probabilities for several possible demand levels and corresponding fleet sizes.Requirements (miles/month) 100,000 150,000 200,000 250,000Fleet Size (trucks) 10 15 20 25Probability 0.2…
You are considering a mortgage for 15 years with initial value $200, 000, and annual interest rate 9.75%. You can reduce your interest rate by buying points. The bank will sell you a point for 1% of the initial value of the loan. Each point you buy reduces your interest rate by 0.15%. You are considering buying 1 point. If you buy these points, how long until your lower monthly payments pay back the cost for these points?
Yoshika Landscaping is contemplating purchasing a new ditch-digging machine that promises savings of $5,600 per year for 10 years. The machine costs $21,970, and no salvage value is expected. The company's cost of capital is 12%. You have been asked to advise Yoshika relative to this capital investment decision. As part of your analysis, compute: a. As a consultant to Campus, compute: 1. The payback period. 2. The unadjusted rate of return. 3. The net present value. 4. The internal rate of return. What factors besides your quantitative analysis should be considered in making this decision? b. On the basis of these computations and any qualitative considerations, would you recommend that Campus purchase the new copier?
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