ces Three different plans were presented to the Ahbhalet Corporation for operating an identity-theft scanning system. Plan A involves renewable 1-year contracts with payments of $1 million at the beginning of each year. Plan B is a 2-year contract that requires four payments of $600,000 each, with the first one made now and the other three at 6-month intervals. Plan C is a 3-year contract that entails payment of $1.5 million now and the second payment of $0.5 million 2 years from now. Assuming that the company could renew any of the plans under the same payment conditions, determine which plan is best on the basis of a PW analysis at a MARR of 6% per year compounded semiannually. The present worth of plan A is $ the present worth of plan B is $ and the present worth of plan C is $ The best plan on the basis of the present worth analysis is plan C

Why the annual worth value give you the same exact value for the repeated period? (Why only the annual worth method will give you a value for one period and it will equal the same exact value for the repeated periods?)

a)Your company seeks to take over Good Deal Company. Your company’s offer for Good Deal is $3,000,000 in cash upon signing the agreement followed by 10 annual payments of $300,000 starting one year later. The time value of money is 10%. Find the present worth of your company’s offer. b)Please do the Sensitivity analysis and find how sensitive the present worth to initial cash upon signing, amount of payments, their frequency and rate of return

To attract new customers, EP Employees Credit Union advertised that they will begin paying 3% interest every quarter on all savings accounts. (Their competitors pay interest every 6 months.) The credit union uses March 31st, June 30th, September 30th, and December 31st as quarterly interest periods. Determine (a) the end-of period totals in the account, and (b) the interest paid each quarter on the total. Assume there are no withdrawals and that quarterly interest is not redeposited. Month Deposit, $ Jan 50 Feb 70 Mar 0 Apr 120 May 20 June 0 July 150 Aug 90 Sept 0 Oct 40 Nov 110 Dec 0

To get the AW of a cash flow of $10,000 that occurs every 10 years forever, with the first one occurring now, it is correct to: (a) multiply the $10,000 by (A∕P,i,10 ) (b) multiply the $10,000 by (A∕F,i,10 ) (c) multiply the $10,000 by i (d) multiply the $10,000 by (A∕F,i,n) and then multiply by i

You are planning to make 18 monthly withdrawals beginning at the end of the sixth month. You plan to withdraw $113 in the sixth month and increase your withdrawals by $17 over the previous month’s withdrawal. How much should you deposit now in a bank account that pays 12% per year compounded monthly?  Hint: Determine m and k and use the decision tree to find how you must setup the cash flow equation. Remember to bring all the cash flows to the proper time period required to answer this question.

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Option i C/R Option ii C/R One Time Costs   One Time Costs   Land-$10 million (Year 1) C Renovations- $35M (Year 0) C Construction- $100 million ($50 M per year for 2 years C Medical Equipment- $20M (Year 0) C Medical equipment- $25million (Year 0) C Licensing & Consulting- $5M (Year 0) C Licensing & Consulting- $15M (spread across year 1 and 2) C Initial Marketing Campaign- $2M (Year 1) C Initial Marketing Campaign- $5 million (Year 3) C Annual Values   Annual Values   Operations & Staff- $7M / year (Year 2+) C Operations & Staff- $11M / year (Year 3+) C Maintenance- $2M / year (Year 2+) C Maintenance- $2.5M / year (Year 3+) C Tech Updates- $1.2M / year (Year 3+) C Tech Updates-$1.5M / year (Year 5+) C Overhauls   Overhauls   Equipment Repairs- $13M (Year 10) C Equipment Repairs- $18M (Year 10) C Facilities Upgrades- $20M (Year 15) C…

A bond with a face value of $10,000 pays interest of 4% per year. This bond will be redeemed at its face value at the end of eight years. How much should be paid now for this bond when the first interest payment is payable one year from now and a 5% yield is desired? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 4% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 5% per year. The purchase price of the bond should be $ (Round to the nearest dollar.)

0 = -26,000 + 8,000(P/A,i∗,5) + 8,000(P/F,i∗,8) solve for i* it is the interest rate period