Machine cost = $15,000; Life = 8 years; salvage value = $3000. What minimum cash return would the investor demand annually from the operation of this machine if he desires interest annually at the rate of 8% in his investment and accumulates a capital replacement fund by investing annual deposits at 5%?

Q: ! Required information You just deposited $9,500 in an investment account and will deposit $5000…

A: Today deposited amount  =$9500After 4 years from now, the deposit  =$5000We have to calculate the…

Q: A company predicts they will make $1,321 per year over the next 19 years if they spend $2,497 on a…

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

Q: Net present value (NPV) of the project =Single payoff x PVIAF (10.20%, 9 years) - initial outlay =…

A: The bolded item represents the present value interest factor(PVIAF) of an annuity is a factor that…

Q: process for producing the mosquito repellant Deet has an initial investment of $205,000 with annual…

A: The following information is given: Initial investment = $205,000 Annual cost = $53000 Annual income…

Q: 1)What is the IRR for a $1000 investment that returns $200 at the end of 100 years?

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: $8000 $4000(1 + 0.15)t- 1 $6000(1 0.3)t ere A(t) stands for the net cash flow in period t and S(t)…

A: Solution Net inflow jn year 1 A(1) = $8000 - $4000 (1+0.15)1-1 = $4000 In year 2 A(2) = $8000 -…

Q: Business Decisions Sharon, the owner of the Brentwood Motel, is planning to renovate all the rooms…

A:

Q: Darnell Enterprises constructed an addition to its building at a cost of $73,000. Extra annual…

A: The provided question has been answered from the theories of 'Financial Economics'.A statistic…

Q: What did you learn from this exercise?

A: (a) Current balance $ 2.000 Nominal Rate (APR) 12.50% Interest payable @ nominal rate per month $…

Q: Business Decisions Sharon, the owner of the Brentwood Motel, is planning to renovate all the rooms…

A: Plan A : Initial Cost = 900,000 Income = 3070000e0.4t For 5 years  = 22684402.2   (Putting t = 5 )…

Q: Today (t=0), you invested the starting principal of $1234. At the end of the first, second, and…

A: Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: Step 1:Step 2:Step 3: Step 4:

Q: If the interest rate is R = 0.10, (approximately) what is the Present Value of $79.20 to be received…

A: Present value is the value of future amount at present. We use the compound interest formula to…

Q: An independent contractor for a transportation company needs to determine whether she should upgrade…

A: EUAC stands for "Equivalent Uniform Annual Cost." It is a financial metric used in capital budgeting…

Q: Hadeel borrows money in the senior year to buy a new car. The car dealership allows to defer…

A: As the monthly payments are deferred for the period of one year, therefore, we will calculate the…

Q: A company has invested in machinery that $23,000 to purchase and install and the company purchased a…

A: To determine the economic life of the machine that minimizes the EUAC, we must calculate the EUAC…

Q: Suppose that annual income from a rental property is expected to start at $1,330 per year and…

A: Net Present Value (NPV) is used in investment analysis to evaluate the profitability of a project,…

Q: Incorrect Question 8 When calculating the Break Even Analysis, one needs to subtract the FW of the…

A: False

Q: In planning for your retirement, you would like to withdraw $60,000 per year for 12 years. The first…

A: Amount to be withdrawn = $60,000 Time period = 12 years  I = 10% per year

Q: Please indicate which of the following function is CRS, IRS or DRS: • F(K, L) = (2K) (3L) • F(K, L)…

A: Increasing returns to scale is when the output increases in a greater proportion than the increase…

Q: The annual income from an apartment complex is $21,128. The annual expense is estimated to be…

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

Q: 1 Water retention. A farmer has the option to add water retention agents into the soil before…

A: Provided information Two types of cropping pattern Without water retention agents in soil With water…

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

A: Interest rate can be calculated by rewriting the equation as follows.

Q: Determine the equivalent value of x from the cash flow in G₁ i% ↑ X

A: Net Present Worth (NPW), also known as Net Present Value (NPV), is a financial metric used in…

Q: What would be the annual worth on this investment?

A: Given intial cost = 100000 $ Annual savings = 60000 $ Salvage value = 20000$ Annual expense = 10000…

Q: Self-tightening wedge grips are designed for tensile testing applications up to 1200 pounds. The…

A: Cumulative cash flow in economics refers to the total amount of cash generated or consumed over a…

Q: 4. Maintenance costs for a small bridge with an expected 60-year life are estimated to be $1,000…

A: Given that, Time period, n = 60 years Interest rate = 10%