AutomationDirect, which makes 6-inch TFT color touch screen HMI panels, is examining its cash flow requirements for the next 5 years. The company expects to replace office machines and computer equipment at various times over the 5-year planning period. Specifically, the company expects to spend $7000 two years from now, $9000 four years from now, and $15,000 five years from now. What is the annual worth over years 1 through 5 of the planned expenditures at an interest rate of 10% per year? Also, write the single-cell spreadsheet function to find A.
AutomationDirect, which makes 6-inch TFT color touch screen HMI panels, is examining its cash flow requirements for the next 5 years. The company expects to replace office machines and computer equipment at various times over the 5-year planning period. Specifically, the company expects to spend $7000 two years from now, $9000 four years from now, and $15,000 five years from now. What is the annual worth over years 1 through 5 of the planned expenditures at an interest rate of 10% per year? Also, write the single-cell spreadsheet function to find A.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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AutomationDirect, which makes 6-inch TFT color
touch screen HMI panels, is examining its cash flow
requirements for the next 5 years. The company expects
to replace office machines and computer equipment
at various times over the 5-year planning period.
Specifically, the company expects to spend
$7000 two years from now, $9000 four years from
now, and $15,000 five years from now. What is the
annual worth over years 1 through 5 of the planned
expenditures at an interest rate of 10% per year? Also,
write the single-cell spreadsheet function to find A.
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