An industrial firefighting truck costs $100,000. Savings in insurance premiums and uninsured losses from the acquisition and operation of this equipment is estimated at $60,000/yr. Salvage value of the apparatus after 5 yrs. is expected to be $20,000. A full-time driver during operating hours will accrue an added cost of $10,000/yr. @ 40% present worth @ 50% present worth

Q: What is the future value of $100 next year. If discount rate is 5% annually

A: Present value = $100  Discount rate = 5%  Future value = PV * (1+i)

Q: What is the amount of interest earned on $2,000 for five years at 10% simple interest per year?

A: here we calculate the interest earned by simple interest so the calculation as follow-

Q: Joe Grant won the state lottery for $20M. He will receive $600,000 per year after taxes for 20…

A: Joe Grant won a lottery and will receive $600,000 per year after taxes. The expected annual interest…

Q: A vintner is deciding when to release a vintage of Sauvignon Blanc. If it is bottled and released…

A: The time value of money (TVM) reflects the idea that a sum of money has a different value today than…

Q: 10,000 per year – at

A:

Q: Due to health reasons, Dave is considering early retirement. He currently has $700,000 in a self-…

A: The net present value considers the entire cash flows in future whether positive or negative over…

Q: QUESTION 1 Figure 10 Trice 6. 4. 3 1 10 20 30 40 30 60 70 80 eaantity Refer to Figure. A price floor…

A: [1] Price flooring means the minimum price to be charged. If the price floor is set at $8 then the…

Q: You deposit $6000 into an 7% account today. At the end of two years, you will deposit another $2500.…

A: Amount after compound interest is applied is calculated by using the formula  A = P(1+r) n

Q: Emma borrowed $3,000 from a lending company for 3 years at 12%. At the end of 3 years, it renews the…

A: borrow at period 0 Amount = 3,000 n = 3 years r = 12% Renews after 3 years Amount = 2,000 n = 2…

Q: The company you work for assumes that a piece of equipment will need to be replaced in 10 years.…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: An investor (owner) has an option to purchase a tract of land that will be worth $20,000 in ten…

A: Compound interest rate is one of the methods of calculating interest rate. It calculates the…

Q: When can we use the Cash-Flow Approach?

A: Cash flow is the net transfer of cash and cash equivalents to and from a business. The ability of a…

Q: A corporate bond paying $1,000 after 36 weeks earns 0.03% simple interest per week. How much did it…

A: The bond gives simple interest  A = P + (P*r*t)/100 A= future value  P= Present value  r= interest…

Q: If the interest rate is 4%, what is the approximate future value of $15,000 in 10 years?

A: Future Value = PV ( 1 + i )n where PV = Present value i = Interest rate n = Number of years   Here…

Q: An industrial juicier costs$45,000. It will be used for five years and then sold to market…

A: Net yearly savings is the amount of money that is obtained after deducting annual expenses from…

Q: Alfred desired 9,000 as the proceeds of a 90-day loan from B who charges 5% interest in advance.…

A: Given, Loan amount = 9,000  Time = 90 days  Interest rate = 5%

Q: A milling machine can be bought with end of every quarter for 16 quarters. machine. a downpayment of…

A: Answer; 358,732.10 is the required answer.

Q: What is Mixed-Dollar Analysis?

A: Mixed-Dollar Analysis is commonly known as a currency basket that consists of different currencies…

Q: Suppose you were given a one time gift of $10,000 to put into a savings account. The account earns…

A: Compound interest is the rate of interest that is used to calculate the value added to a loan or a…

Q: Write  the formula which is used to calculate the annual effective yield?

A: Effective yield refers to the return on a bond for which interest payments are reinvested by the…

Q: Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid…

A: To calculate the nominal interest rate and effective interest rate, we can use the information…

Q: Assume that $150 invested a year ago will return $170 a year from now. What is the annual interest…

A: Present value(PV) is that value of an amount(A) of money that is worth today. It is less than the…

Q: How can we use the capital recovery factor?

A: The capital recovery factor (CRF) is a type of ratio which is used to calculate the present value of…

Q: If a bond with a normal value (N) of £100 and a coupon of 2.5% can be bought a a market price (P) of…

A: Given bond value = 100 Euros Counpon rate = 2.5 % = 2.5 % of 100 = 2.5 Euros Market price of bond =…

Q: borrowed $25,000 with an add-on rate, 6% for three years, and I have to make veekly payments. Jsing…

A: 8832 would be for 1 year If for one week $184 184*48=8832 For 3 years 8832*3=26496 $26496 is…

Q: A saving association pays 2% interest monthly. What is the effective annual rate of interest?

A: Effective annual interest rate = [1 + (i/n)]n - 1

Q: Wou decide to place all your savings of $1,234 into a fund that has a modest annual interest rate of…

A: An annual percentage rate is expressed as an interest rate. It calculates what percentage of the…

Q: How can we determine the Company's Cost of Capital?

A: In economics, the cost of capital of a firm is the cost of the funds available to the company…

Q: You are planning to invest $4,000 in an account earning 8% per year for retirement. a. If you put…

A: In the referenced inquiry we are posed with regards to the future worth we will finish from the…

Q: How much should be put in an investment with a 10% effective annual rate today to have $10000 in…

A: The effective annual rate = 10% Future value of an investment = 10000 dollars Time period = 5 years

Q: Determine the monthly mortgage payment for an $80,000 loan at 5% interest when it’s borrowed for 30…

A: The monthly installment will depend on the value of interest rate and duration of loan amount.  This…

Q: You would like to have $800,000 in your retirement account in 40 years. You assume your retirement…

A: When individuals who have earned incomes have a separate account that they wish to save for the…