Problem 8 Metso Automation, which manufactures addressable quarter-turn electric actuators, is planning to set aside $70,000 now and $90,000 two years from now for possible replacement of the heating and cooling systems in three of its larger manufacturing plants. If the replacement won't be needed for 5 years, how much will the company have in the account in 5 years, if it earns interest at a rate of 8% per year?

Problem 8 Metso Automation, which manufactures addressable quarter-turn electric actuators, is planning to set aside $70,000 now and $90,000 two years from now for possible replacement of the heating and cooling systems in three of its larger manufacturing plants. If the replacement won't be needed for 5 years, how much will the company have in the account in 5 years, if it earns interest at a rate of 8% per year?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Problem 8 Metso Automation, which manufactures addressable quarter-turn electric actuators, is
planning to set aside $70,000 now and $90,000 two years from now for possible replacement of
the heating and cooling systems in three of its larger manufacturing plants. If the replacement
won't be needed for 5 years, how much will the company have in the account in 5 years, if it earns
interest at a rate of 8% per year?

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