Please correct answer and don't use hand rating A software company that installs systems for inventory control using RFID technologyspent $600,000 per year for the past 3 years in developing their latest product. Thecompany optimistically hopes to recover its investment in 5 years on a single contractbeginning immediately (year O). The company is negotiating a contract that will pay$290,000 now and a to-be-agreed-upon annual increase of a constant amount each yearthrough year 5. How much must the income increase (an arithmetic gradient) each year ifthe company wants to realize a return of 9.00% per year? (Round the final answer to threedecimal places.)The income must increase by $ 65984.7622 ☑

Answered: A software company that installs…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Jasmine invested the profit of his business in an investment fund that was earning 3.50% compounded monthly. He began withdrawing $3,500 from this fund every 6 months, with the first withdrawal in 4 years. If the money in the fund lasted for the next 6 years, how much money did he initially invest in the fund?
If Php 5000 is invested at 0.667% interest per month, compounded continuously, how much will be in the account after 5 years?
Peter has decided to make a deposit of $500 each quarter (starting next quarter) for 5 years. If the interest rate is 16%/year compounded monthly, the closest equivalent future value right after his last deposit is Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Mr. Juan dela Cruz borrowed P 1,000 and was able to sign a promissory note that he would pay P 2,032.79 after 4 years. What is the value of the present worth factor?
A retail outlet is being designed in a strip mall in Nebraska. For this outlet, the installed fiberglass insulation to protect against heat loss in the winter and heat gain in the summer will cost an estimated $110,000. The annual savings in energy due to the insulation will be $19,000 at EOY one in the 8-year life of the outlet, and these savings will increase by 15% each year thereafter. If the annual interest rate is 20%, is the cost of the proposed amount of insulation justified? Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. Click the icon to view the interest and annuity table for discrete compounding when ;=20% per year. The present equivalent of energy savings is $ Is the cost of the proposed amount of insulation justified? No O Yes (Round to the nearest dollar.)
Each year Exxon-Mobil expends large amounts of funds for mechanical safety features throughout its worldwide operations. Carla Ramos, a lead engineer for Mexico and Central American operations, plans expenditures of $1 million now and each of the next 4 years just for the improvement of field-based pressure-release valves. Construct the cash flow diagram to find the equivalent value of these expenditures at the end of year 4, using a cost of capital esti- mate for safety-related funds of 12% per year. i = 12% F = ? -1 3 Year A = $1,000,000 Cash flow diagram.
For the cash flows shown, find the future worth in (a) year 5, and (b) year 4. Assume an i of 10% per year. Year 0 1 2 3 4 5 Cash Flow, $ 0 0 3000 3000 3000 3000
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Ahmad wants to borrow KD10,000 now from a bank to purchase a new car. He would like to .1 repay the loan in equal quarterly payments over 20 years. Find the unpaid balance after the 64th payment if the effective interest rate is 5% per quarter
The annual worth for years 1 through 7 of the cash flows shown is $35,000. What is the amount of x, the cash flow in year 3, at i - 8% per year? Write the basic set up equations, formulae used and all detailed calculations used to arrive your answer. The value or x as per your calculation is_ i= 7% per year 0. 1 4 6. 7 Years 3000 4000 2x 7000 8000 9000

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