A firm is trying to decide between two equipment for a production activity. The following information is available.Equip 1$31,0004 yearsSOEquip 2$22.000Initial investmentUseful life4 yearsSoSalvage valueOperating cost per hour$4.40$5.00At a MARR of 4% per year, determine the breakeven number of operating hours per year.Click the icon to view the interest and annuity table for discrete compounding when i= 4% per year......The breakeven number of operating hours per year isO A. 3,512More infoО В. 5,372ОС. 4,958Discrete Compounding; i= 4%O D. 4,132Single PaymentCompoundAmountUniform SeriesCompoundSinkingCapitalRecoveryFactorPresentAmountPresentFundFactorWorth FactorFactorWorth FactorFactorTo Find PTo Find ATo Find AGiven PTo Find FTo Find FTo Find PGiven APIAGiven PGiven FGiven AGiven FF/PP/FFIAA/FA/P0.96150.96151.886111.04001.00001.00001.040021.08160.92462.04000.49020.53021.12490.88903.12162.77510.32030.360341.16990.85484.24653.62990.23550.27551.21671.26535.41636.63304.45185.24210.82190.18460.224660.79030.15080.190871.31590.75997.89836.00210.12660.166681.36860.73079.21426.73270.10850.148591.42330.702610.58287.43530.09450.1345101.48020.675612.00618.11090.08330.1233

for breakeven point, the difference in the initial investment should offset the additional cost…

A firm is trying to decide between two equipment for a production activity. The following information is available. Equip 2 $22,000 Equip 1 Initial investment $31,000 Useful life 4 years SO 4 years so Salvage value Operating cost per hour $4.40 $5.00 At a MARR of 4% per year, determine the breakeven number of operating hours per year. 9 Click the icon to view the interest and annuity table for discrete compounding when i= 4% per year. The breakeven number of operating hours per year is - X O A. 3,512 ОВ. 5,372 More info OC. 4,958 Discrete Compounding; i- 4% O D. 4,132 Single Payment Compound Uniform Series Compound Sinking Amount Factor Capital Recovery Factor Present Amount Factor Present Worth Factor Fund Factor Worth Factor

A firm is trying to decide between two equipment for a production activity. The following information is available. Equip 2 $22,000 Equip 1 Initial investment $31,000 Useful life 4 years SO 4 years so Salvage value Operating cost per hour $4.40 $5.00 At a MARR of 4% per year, determine the breakeven number of operating hours per year. 9 Click the icon to view the interest and annuity table for discrete compounding when i= 4% per year. The breakeven number of operating hours per year is - X O A. 3,512 ОВ. 5,372 More info OC. 4,958 Discrete Compounding; i- 4% O D. 4,132 Single Payment Compound Uniform Series Compound Sinking Amount Factor Capital Recovery Factor Present Amount Factor Present Worth Factor Fund Factor Worth Factor

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

Problem 1PS

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Complete the following analysis of investment alternatives and select the preferred alternative. The study period is three years and the MARR = 15% per year. Alternative Alternative Alternative A B C Capital investment Annual revenues Annual costs Market value at EOY 3 PW (15%) Click the icon to view the interest and annuity table for discrete compounding when i=15% per year. OA. Alternative A OB. Alternative C OC. Alternative B OD. Do Nothing $11,000 3,900 240 4,900 578 The PW of the alternative B is $ (Round to the nearest dollar.) Select the preferred alternative. Choose the correct answer below. $15,000 6,500 450 6,100 ??? $13,100 5,500 400 2,800 385
Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $500 per year for 8 years at 8%. $ b. $250 per year for 4 years at 4%. $ c. $1,000 per year for 4 years at 0%. $ d. Rework parts a, b, and c assuming they are annuities due. Future value of $500 per year for 8 years at 8%: $ Future value of $250 per year for 4 years at 4%: $ Future value of $1,000 per year for 4 years at 0%: $
Book Show Me How E Print Item Internal Rate of Return A project is estimated to cost $507,840 and provide annual net cash flows of $69,000 for 10 years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.353 2.991 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 of return for this proj using the Present Value of an Annuity of $1 at Compound Interest table shown above. Determine the internal Previous Check My Work 3 more Check My Work uses remaining. Email Instructor Save and Exit Submit Assignmen All work saved. DD F11 F10 80 888 F9 F8 F6 F4 & # $ %3D 4 5 6 7 8 9 3 P E R Y U G H JK
A $3,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual payments. How much is each payment if the interest rate is 7.5% compounded annually? (a) State the type. A. present valueB.sinking fund C.present value of an annuityD.amortizationE.ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.)
The following investment requires table factors for periods beyond the table. Using Table 11-1, create the new table factor, rounded to five places, and calculate the compound amount (in $, rounded to the nearest cent.) Time Nominal Interest New Table Compound Principal Period (years) Rate (%) Compounded Factor Amount $17,000 29 annually $ Need Help? Read It
find the final amount in this retirement account, in which the rate of return on the account and the regular contribution change over time 1500$ per quarter invested at 7.9% compound quarterly , for 20 years, then 1000$ per quarter invested at 6.8% compund quarterly for 10 years. answer is about 620,187$
Carry out the amortization table of an automobile loan that is canceled with 36 monthly payments of $ 5,750, at an interest rate of 25.20% per annum, compounded by months, to. Make the amortization table for this case that contains: payment, interest, payment to capital and unpaid balance. b. What is the unpaid balance after making payment number 15? c. What is the unpaid balance after making payment number 30?
Suppose you borrow $14,000. The interest rate is 11%, and it requires 4 equal end-of-year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. Round your answers to the nearest cent. If your answer is zero, enter "0". Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ fill in the blank 60 $ fill in the blank 61 $ fill in the blank 62 $ fill in the blank 63 $ fill in the blank 64 2 $ fill in the blank 65 $ fill in the blank 66 $ fill in the blank 67 $ fill in the blank 68 $ fill in the blank 69 3 $ fill in the blank 70 $ fill in the blank 71 $ fill in the blank 72 $ fill in the blank 73 $ fill in the blank 74 4 $ fill in the blank 75 $ fill in the blank 76 $ fill in the blank 77 $ fill in the blank 78 $ fill in the blank 79
Prepare an amortization schedule for a three-year loan of $117,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? Note: Leave no cells blank. Enter '0' where necessary. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Year 1 2 3 $ Beginning Balance 117,000.00 Total Payment Total interest Interest Payment Principal Payment Ending Balance
An engineer buys a piece of lot for P250,000 down payment and 10 deferred semi-annual payments of $20,000 each, starting 3 ½ years from now. What is the present value of the investment if the rate of interest is 10% compounded quarterly? A. 403,967.03 B. 372,891.34 C. 319,368.96 D. 364,483.09
A machine has the following cash flows for the last two years of service. The MARR is 10% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Calculate the EUAC of the machine if kept in service over the remaining two years O A. $49,600 O B. $24,929 O C. $37,500 O D. $27,500 O E. $22,100 (b) Calculate the marginal cost of the machine for year 2. OA. $37,500 O B. $22,100 OC. $24,929 O D. $27,500 O E. $49,600 Year 0 1 2 Market Value $45,000 31,000 24,000 (・・・ O&M Costs $9,000 12,000
General Instruction: Use Yellow paper for your computation and answer. Task 1. Compute the interest of the following: 1. P25,000 at 6% simple interest for 1 year. 2. P30,000 at 9.5% simple interest for 90 days. 3. P60,000 at 12.5% simple interest for 2 years and 6 months.

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