Solve the following with complete solutions please An electronic device is available that will reduce this year's labor cost by $15284.The equipmentis expected to last for eight years. If labor cost increase at an average rate of 7% per year atinterest rate is 12% compounded bimonthly. What is the maximum amount that we couldjustify spending for the device?Note: Draw the cash flow diagram and use interest rate with five decimal places. Boxyour final answer and upload the picture of your solution.Round your answer to 2 decimal places.

To solve this problem, we'll use the present worth method to determine the maximum amount that can…

Answered: An electronic device is available that…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A firm has borrowed $5,000,000 for 5 years at 10% per year compound interest. The firm will make no payments until the loan is due, when it will pay off the interest and principal in one lump sum. What is the total payment? Assume that your answer is in units of $. Only input the numeric value of your calculation.
Topic: Gradient Geometric Series An electronic device is available that will reduce this year’s labor cost by$12543.The equipment is expected to last for eight years. If labor cost increase at an average rate of 7% per year at interest rate is 12% compounded bimonthly. What is the maximum amount that we could justify spending for the device? Note: Draw the cash flow diagram and use interest rate with five decimal places.
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☐ Your company plans to buy a new vehicle, with a loan payment of $400 per month for 60 months. You estimate that the cost of gas will be $50 in the first month and increase by 1% each month. What is the present equivalent of the loan and gas costs for the vehicle over the 60 months of the loan, assuming an interest rate of 8%? Typed numeric answer will be automatically saved.
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Demarcus is planning to purchase a piece of property that he anticipates will cost $455,000 in 6 years. He has recently received a significant bonus and would like to set aside money now to cover the cost of the property. Assuming Demarcus' money will be placed into an account that will earn 7% annually, how much would he need to invest now to be able to purchase the land? Click here to access the TVM Factor Table calculator. Carry all interim calculations to 5 decimal places and then round your fınal answer to a whole number. The tolerance is ±5.
Trevor's starting salary at his new job is $40,000. His company gives a performance raise of 5% each year. If Trevor continues in the same position and always receives the performance raise, in how many years will he double his salary?
FIN301 Copyright © 2020 Singapore University of Social Sciences (SUSS) Page 5 of 5Timed Online Assignment – July Semester 2020(a) Suppose Jack can get a 2% interest rate for a 6 month USD deposit, solve for the interest rate for a 6 month SGD deposit so that Jack will be indifferent to exchanging the USD now or in 6 months’ time. (Note: The 2% is not an annual rate but is applicable for the 6-month period.) (b) Suppose Jack decides not to use the forward market to hedge the exchange rate risk but use the futures market instead. Explain one (1) advantage and one (1) disadvantage of using each method.
1.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000 d)$20000 2.The simple interest on a $6500 loan at 15% for 9 months is. a)$731.25 b)$7312.50 c)$73.13 d)$2925 3. If we deposit $5000 in an account that pays 9% per year. Find the amount of simple interest earned during 8 months. a)$3000 b)$300 c)$360 d)$3600 4.The simple interest charged on a loan amount of $8500 for 2 years was $1275. What rate of interest was charged a)22.5% b)3.75% c)15% d)7.5% 5.What rate of simple interest will make a principal double itself in 6 years. a)16.67% b)8.33% c)33.33% d)4.16% 6.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000 d)$20000
Show the steps of your calculation O For example, question: a person deposits $500 to bank now, if the annual interest rate is 8%, what will be the worth of this deposit after 3 years? You need to write down F = P (F/P, i, n) – 500 (F/P, 8%, 3) mem
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