Labco Scientific sells high-purity chemicals to universities, research laboratories, and pharmaceutical companies. The company wants to invest in new equipment that will reduce shipping costs by better matching the size of the completed products with the size of the shipping container. The new equipment is estimated to cost $420,000 to purchase and install. How much must Labco save each year for 5.00 years in order to justify the investment at an interest rate of 9.00% per year? (Round the final answer to three decimal places) Labco must save $ 113,798.670 each year.

Labco Scientific sells high-purity chemicals to universities, research laboratories, and pharmaceutical companies. The company wants to invest in new equipment that will reduce shipping costs by better matching the size of the completed products with the size of the shipping container. The new equipment is estimated to cost $420,000 to purchase and install. How much must Labco save each year for 5.00 years in order to justify the investment at an interest rate of 9.00% per year? (Round the final answer to three decimal places) Labco must save $ 113,798.670 each year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Joseph Ray just received an inheritance of $50,000 from his great aunt. He plans to invest the funds for retirement. If Joseph can earn 6% per year with quarterly compounding for 30 years, how much will he have accumulated? $271,550 $269,113 $284,622 $298,466
Q.4. Subject :- Economic
How much invested now at 8% would be just sufficient to provide three payments, with the first payment in the amount of $9,000 occurring two years hence, then $6,000 five years hence, and finally $3,000 seven years hence? Click the icon to view the interest factors for discrete compounding when i = 8% per year. The invested amount should be $ (Round to the nearest dollar.)
I want to know how calculate CR and please don't give handwritten answer.. Thanks
Your parents make 25 equal annual deposits of $2089 each into a bank account earning 4% per year compounded quarterly. The first deposit will be made one year from today. How much money can be withdrawn from this account immediately after the 25th deposit?