A company purchased a CAD software for $5000 now and the annual payments of $500 per year for 6 years starting 3 years from now for annual upgrades is contracted. What is the present worth in year 0 of the payments if the interest rate is 8% per year?

Q: r=12% per year , compounded monthly, quarterly, seminaually, yearly , 2 years.Effective interest…

A: here we calculate the compound interest for following time interval , so calculation as follow-

Q: A person has 80,000 in a savings account that earns interest at 7% per year, compounded annually. If…

A: Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate 80,000=12000[1-(1.075)^-time…

Q: Darien invests $10,000 in an account that pays 3.2% interest per year, compounded semi-annually.…

A: Interest can be defined as the amount received in excess of the principal amount to the investor.…

Q: A mechanical contractor is trying to calculate the present worth of personnel salaries over the next…

A: Given information: Salary at the end of year = $150000 Raise per year = 5% Interest rate = 12%

Q: alesperson from Superfiber Insulation, Inc., has told you, the plant engineer, that he can reduce…

A: Answer   The correct answer is option 'b' i.e., 9811.31   Explanation

Q: equivalent annual cash flows of $400,000 for the first 5 years. If the cash flow in year 1

A:

Q: What is the difference of the amount of P5000 3 years from now using ordinary simple and compound…

A: Given information: Present value (P): P5000 Time period (t): 3 years Interest rate (r): 10% To…

Q: A production company is planning to open up another manufacturing setup in order to cope up with…

A: As given Principle amount is 8000 And interest rate = 12% Time = 6years Compounded quarterly

Q: A boy is celebrating his 16th birthday and we lead 3000 on 17th 18th 19th and 20th birthday for his…

A: The objective of the question is to find out the initial amount that the father needs to set aside…

Q: A deposit of $37436 now at an interest rate of 10% per year will accumulate in 10 years to an amount…

A:

Q: The by-product department of Iowa Packing utilizes a cooker that has the cost stream shown.…

A: Given:

Q: A start-up company sets aside 1,100,000 now into an exigency fund, how much will have the company…

A: The term 'exigency' indicates urgency. Thus exigency fund indicates a fund kept for urgency…

Q: An Industrial Engineer made a modification to a chip manufacturing process that will save the…

A: Given that the company saves $10,000 per year and there is an interest rate of 8%, the compound…

Q: An engineering technology group just purchased new CAD software for $5000 now and annual payments of…

A: Present worth: The present worth (PW) of cash flow is the current worth of a cash flow occurring in…

Q: end tells you she has saved for 8 years and has a present sum of $20,000, which earned at the

A: For the given question, present value needs to be calculated.

Q: "The heat loss through the exterior walls of a certain poultry processing plant is estimated to cost…

A: Annually $200 is the cost of heat loss =200 [1/i−n/(1+i)n−1]= 200 [1/0.1029−10/(1+0.1)10−1]…

Q: Maintenance costs for a regenerative thermal oxidizer have been increasing uniformly for 5 years. If…

A: The present worth of the cost can be calculated as follows:…

Q: Thank you !!!!!! Sherry expects to deposit $2000 now, $1000 4 years from now, and $2500 7 years…

A: *Answer:

Q: Max is planning to set aside $1,500 now for possibly replacing his laptop whenever it becomes…

A: M. is planning to set aside some of his money ($1500) for replacing his laptop in need. But if he…

Q: How much could BTU Oil & Gas Fracking afford to spend on new equipment  every start of the year for…

A: Given: Profit=P 50 million Duration=3 years Rate of return=20%

Q: Mr. Doe borrowed $1000 from his bank at 8% per year, compounded annually. He can (i) repay the $1000…

A: Given, Net amount- $1000 Interest- 8% Time- 8 years

Q: 1. What is the future worth of a uniform, end of period, annual series of $8500 for 10 years at an…

A: Considering the given information as follows:- i = 10% n = 10

Q: Calculate the Money created if the initial deposit is 400 and LRR is 20%

A: Legal reserve ratio is basically determined to be as the minimum value of the fraction of the…

Q: The optical products division of LG planning a $3 million building expansion for manufacturing its…

A: In economics, present value refers to the current value of a future stream of cash flows. Net…

Q: warranty expired after 3 years of ownership. The cost of periodic mainten $800 every 2 years. If the…

A: First we compute Calculate the present worth of the repair and maintenance. Second we compute…

Q: Southwestern Moving and Storage wants to have enough money to purchase a new tractor-trailer in 3…

A: It is given that the firm is required to purchase a new tractor-trailer which costs a sum of…

Q: Find the present worth of a future payment of 300, 000 to be made 5 years with an interest rate of…

A: Introduction Present worth is the sum of money that should be invested in order to achieve a…

Q: Because of a chronic water shortage in California, new athletic fields must use artificial turf or…

A: Cash Flow PeriodIf a person gets a certain amount of cash, he must disburse that amount after a…

Q: An A&E firm planning for a future expansion deposited $36,000 each year for 5 years into a sinking…

A: Yearly deposit in the investment fund is $36,000.Number of deposits =5  and the first deposit will…

Q: A new oven wil save $150 per year in electricity expense How much can we afford to pay for this oven…

A: Here the $150  expense is saved by oven each year and oven life is 12 years . It is equivalent as…

Q: 22   What is the Present Worth of S2,000 costs in year one, increasing by $500 per year for years…

A: First Cost = 2,000 Increase by 500 per year Interest rate = 12%

Q: A credit union charges 4% interest per month on the unpaid balance for purchases made on the credit…

A: The current value of a future sum of money or stream of cash flows given a specified rate of return…

Q: What is the effective interest rate of interest rate is 16% per year compounded monthly?

A: The charge per unit could be a proportion of the principal—the quantity borrowed—that a loaner…

Q: The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled…

A: Present Worth of Investment:Calculating the equivalent annual cost, the PW, or the FW of a…

Q: Find the present worth at time 0 of the chrome plating costs shown in the cash flow diagram. Assume…

A: The present value of an asset refers to the value of the asset after using it for many years. Every…

Q: Henry Mueller Supply Co. sells vibration control equipment for wind turbines exposed to harsh…

A: Here at initial period net cash flow is zero ( 1000-1000)  And it is kind of ordinary annuity .…

Q: For the cash flows shown, find the future worth in (a) year 5, and (b) year 4. Assume an i of 10%…

A: The given information states that the cash flows for the investment is $0 for year 0, $0 for year 1,…

Q: A deposit of $21257 now at compounded interest rate of 12.3% per year will accumulate in 10 years to…

A: Given information: Principal amount (P): $21257 Interest rate (r): 12.3% Compunding period (m): 1…

Q: Your grandfather made a save account with the interest of 10% per year, to that account worth a

A: Grandfather made save account with interest rate is 10% per year and account worth a value of $100…

Q: 2. Firm wishes to have $3,000 seven years from now. What amount should be deposited now at an…

A: Given information: Future value (FV)= $3,000 Time period (nper)= 7 years Interest rate (rate)= 5%…

Q: How many years would it take for an investment of $280,000 to accumulate to at least $425,000 at 15%…

A: Interest rate= 15% FV=425,000 PV= 280,000

Q: What is the present value of $8000 paid at the end of each of the next 16 years if the interest nate…

A: The present value of the annuity is the current value of the future payments from an annuity. The…

Q: Each year Exxon-Mobil expends large amounts of funds for mechanical safety features throughout its…

A: Cash flow diagrams are graphic representations of income and expenses across time. The diagram is…

Q: u plan to deposit $100 per week into a fund that pays interest of 6% per year, compounded quarterly.…

A: Given data: plan to deposit 100 dollar per week Interest rate is 6% per year Then the Interest…