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he interest factors for discrete compounding when /=8% per year. I le rides per year required to justify the shuttle project is million. Round to three decimal places.) - X More Info em river Annual Expense (5) $70,000 aintenance $15,000 N surance $5,000 1 2 3 4 5 Print Done 67749 8 10 11 12 Single Payment Compound Amount Factor (F/P.I, N) 1.0800 1.1238 1.1910 1.2825 1.3382 1.4185 1.5038 1.5938 1.6895 1.7908 1.8983 20122 Present Worth Factor (P/F, i, N) 0.9434 0.8900 0.8398 0.7921 0.7473 0.7050 0.6651 0.8274 0.5919 0.5584 0.5268 04970 Compound Amount Factor (F/A, i, N) 1.0000 2.0800 3.1838 4.3740 5.6371 6.9753 8.3938 9.8975 11.4913 13.1808 14.9716 16.8099 Equal Payment Series Sinking Present Fund Factor Worth Factor (A/F, L, N) (P/A, L, N) 1.0000 0.9434 0.4854 1.8334 0.3141 2.6730 0.2288 3.4851 0.1774 4.2124 0.1434 4.9173 0.1191 5.5824 0.1010 6.2008 0.0870 6.8017 0.0759 7.3801 0.0068 7.8809 00503 8.3838 Capital Recover Factor (A/PIN 1.0800 0.5454 0.3741 0.2888 0.2374 0.2034 0.1791 0.1610 0.1470 0.1350 0.1258 01193

he interest factors for discrete compounding when /=8% per year. I le rides per year required to justify the shuttle project is million. Round to three decimal places.) - X More Info em river Annual Expense (5) $70,000 aintenance $15,000 N surance $5,000 1 2 3 4 5 Print Done 67749 8 10 11 12 Single Payment Compound Amount Factor (F/P.I, N) 1.0800 1.1238 1.1910 1.2825 1.3382 1.4185 1.5038 1.5938 1.6895 1.7908 1.8983 20122 Present Worth Factor (P/F, i, N) 0.9434 0.8900 0.8398 0.7921 0.7473 0.7050 0.6651 0.8274 0.5919 0.5584 0.5268 04970 Compound Amount Factor (F/A, i, N) 1.0000 2.0800 3.1838 4.3740 5.6371 6.9753 8.3938 9.8975 11.4913 13.1808 14.9716 16.8099 Equal Payment Series Sinking Present Fund Factor Worth Factor (A/F, L, N) (P/A, L, N) 1.0000 0.9434 0.4854 1.8334 0.3141 2.6730 0.2288 3.4851 0.1774 4.2124 0.1434 4.9173 0.1191 5.5824 0.1010 6.2008 0.0870 6.8017 0.0759 7.3801 0.0068 7.8809 00503 8.3838 Capital Recover Factor (A/PIN 1.0800 0.5454 0.3741 0.2888 0.2374 0.2034 0.1791 0.1610 0.1470 0.1350 0.1258 01193

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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--- ### University Shuttle Service Justification A large land-grant university that is currently facing severe parking problems on its campus is considering constructing parking decks off campus. A shuttle service could pick up students at these off-campus parking decks and transport them to various locations on campus. The university would charge a small fee for each shuttle ride, and the students could be quickly and economically transported to their classes. The funds raised by the shuttle would be used to pay for trolleys, which cost about $107,000 each. Each trolley has a 12-year service life, with an estimated salvage value of $12,000. To operate each trolley, additional expenses will be incurred, as given in the table below. If students pay 10 cents for each ride, determine the annual ridership per trolley (number of shuttle rides per year) required to justify the shuttle project, assuming an interest rate of 6%. - [Click the icon to view the additional expenses.](#) - [Click the icon to view the interest factors for discrete compounding when i = 6% per year.](#) **The annual number of shuttle rides per year required to justify the shuttle project is ____ million. [Round to three decimal places.]** --- #### Additional Expenses | Item | Annual Expense ($) | | ----------- | ------------------ | | Driver | $70,000 | | Maintenance | $15,000 | | Insurance | $5,000 | --- #### Interest Factors for Discrete Compounding (i = 6% per year) ##### Single Payment and Equal Payment Series Interest Factors | N | Compound Amount Factor (F/P, i, N) | Present Worth Factor (P/F, i, N) | Compound Amount Factor (F/A, i, N) | Sinking Fund Factor (A/F, i, N) | Present Worth Factor (P/A, i, N) | Capital Recovery Factor (A/P, i, N) | |----|-----------------------------------|---------------------------------|-----------------------------------|---------------------------------|---------------------------------|-----------------------------------| | 1 | 1.0600 | 0.9434 | 1.0000 | 0.9434 | 1.0000 | 1.0600 | | 2 | 1.1236 | 0.8900 | 2.0600 | 0.456
Transcribed Image Text:--- ### University Shuttle Service Justification A large land-grant university that is currently facing severe parking problems on its campus is considering constructing parking decks off campus. A shuttle service could pick up students at these off-campus parking decks and transport them to various locations on campus. The university would charge a small fee for each shuttle ride, and the students could be quickly and economically transported to their classes. The funds raised by the shuttle would be used to pay for trolleys, which cost about $107,000 each. Each trolley has a 12-year service life, with an estimated salvage value of $12,000. To operate each trolley, additional expenses will be incurred, as given in the table below. If students pay 10 cents for each ride, determine the annual ridership per trolley (number of shuttle rides per year) required to justify the shuttle project, assuming an interest rate of 6%. - [Click the icon to view the additional expenses.](#) - [Click the icon to view the interest factors for discrete compounding when i = 6% per year.](#) **The annual number of shuttle rides per year required to justify the shuttle project is ____ million. [Round to three decimal places.]** --- #### Additional Expenses | Item | Annual Expense ($) | | ----------- | ------------------ | | Driver | $70,000 | | Maintenance | $15,000 | | Insurance | $5,000 | --- #### Interest Factors for Discrete Compounding (i = 6% per year) ##### Single Payment and Equal Payment Series Interest Factors | N | Compound Amount Factor (F/P, i, N) | Present Worth Factor (P/F, i, N) | Compound Amount Factor (F/A, i, N) | Sinking Fund Factor (A/F, i, N) | Present Worth Factor (P/A, i, N) | Capital Recovery Factor (A/P, i, N) | |----|-----------------------------------|---------------------------------|-----------------------------------|---------------------------------|---------------------------------|-----------------------------------| | 1 | 1.0600 | 0.9434 | 1.0000 | 0.9434 | 1.0000 | 1.0600 | | 2 | 1.1236 | 0.8900 | 2.0600 | 0.456
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