(Quantitative Question) You are thinking of building a new machine that will save you $1200 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 2.9% per year forever. What is the present value of the savings if the interest rate is 5.2% per year? Write the answer both space provided and on the empty pages on which you will also show your work (including timeline ). in the
(Quantitative Question) You are thinking of building a new machine that will save you $1200 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 2.9% per year forever. What is the present value of the savings if the interest rate is 5.2% per year? Write the answer both space provided and on the empty pages on which you will also show your work (including timeline ). in the
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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32 you dont have to include timeline
Transcribed Image Text:QUESTION 32
(Quantitative Question) You are thinking of building a new machine that will save you $1200 in the first year. The machine will then begin to wear out so that the
savings decline at a rate of 2.9% per year forever. What is the present value of the savings if the interest rate is 5.2% per year? Write the answer both
space provided and on the empty pages on which you will also show your work (including timeline
in the
).
QUESTION 33
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