AUS Government report predicts that the US PostalService to lose 57 billion at the end of this year, and ifthe business model is not changed, the losses willtotal $ 84 billion by the end of year 12. If the lossesincrease uniformly over the 10-year period (as anarithmetic gradient), determine the following.(A) The loss 7 years from now(B) The equivalent uniform payment factor of thelosses at an interest rate of 8% per year (C) Theequivalent present worth of the losses at an interestrate of 10% per year.A. $ 209.3 billion B. $ 195.7 billionC. $ 49 billionD. $ 42 billionE. $ 37.63 billion F. $ 56 billionG. $ 26.54 billion H. $ 234.6 billion I. $ 32.17 billion

Step 1: Determine the Uniform Gradient of Loss IncreaseInitial loss at the end of year 1 (Year 0…

Answered: AUS Government report predicts that the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Define the economy symbols to determine how many years it would take for $13,000 to double in size at a compound interest rate of 6.8% per year.
A large electronic retailer is considering the purchase of software that will minimize shipping expenses in its supply chain network. This software, including installation and training, would be a $10-million investment for the retailer. If the firm’s effective interest rate is 15% per year and the life of the software is four years, what annual savings in shipping expenses must there be to justify the purchase of the software?
A $10,000 bond has an interest rate of 6% per year payable quarterly. The bond matures 15 years from now. At a nominal interest rate of 8% per year, compounded quarterly, the present worth of the bond is represented by which of the equations below: PW = 150(P/A, 2%, 60) + 10,000(P/F, 2%, 60) PW = 600(P/A, 2%, 60) + 10,000(P/F, 2%, 60) PW = 600(P/A, 8%, 15) + 10,000(P/F, 8%, 15) PW = 150(P/A, 1.5%, 60) + 10,000(P/F, 1.5%, 60)
j ] The present worth of $1,000 deposits in years 1 through 5 and a single disbursement of $500 in year 3, if the interest rate is %10 per year for the first two years and 8% per year thereafter, is closest to: a) $4,248.215 b) $3,865.633 c) $4,262.115 d) $4,166.450
SMS Inc. wants to have enough money to purchase a new tractor-trailer in 5 years. If the unit will cost $500,000, how much should the company set aside each year (starting at the end of year 1 and each year until year 5) if the account earns a compound interest of 12% per year? (All the alternatives presented below were calculated using compound interest factor tables including all decimal places) $283,700 $138,705 $78,705 $61,615
Calculate the future value if present value (PV) = $1548, interest rate (r) = 9.0% and number of years (t) = 18
i will 10 upvotes urgent.
1. John Doe Co., a company that makes tractors, budgeted $75,000 per year to pay for certain components over the next 6 years. If the company expects to spend $16,000 in year 1, how much of a uniform (arithmetic) increase each year is the company expecting in the cost of this part? Assume the company uses an interest rate of 10 % per year.
A company that manufactures air-operated drain valve assemblies currently has $110,000 available to pay for plastic components over a 5-year period. If the company spent only $42,000 in year 1, what uniform annual amount can the company spend in each of the next 4 years to deplete the entire budget? Let i = 13% per year. The uniform annual amount the company can spend is $.
For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. Company C wants to start saving money for replacement of network servers. If the company invests $100,000 at the end of year 1 but decreases the amount invested by 5% each year, how much will be available 5 years from now at an earning rate of 10% per year?

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