Question 3: Investment over time? (show all your work. Points will bededucted for no work) (20 points)A rental company is looking to purchase equipment for a marginal resourcecost of $50000. The company will earn a revenue of $4000 per year for 5years. At year 5, the company will also earn a salvage value of the equipmentof $10000. The interest on the borrowing is 7%a. Fill in the table belowYearFuture ValuePresent ValueDiscount Factor (percentage)123451. Complete the table above2. Should this firm invest, show why or why not?

Step 1: Identify the givenEquipment costs (Initial Investment): $50,000.00Annual Revenue (Cash…

Answered: Question 3: Investment over time? (show…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Subject : Engineering Economics Please write handwritten Answer
Please give correct answer
DARPA is planning to purchase a new machine.The initial investment required for this is $60000.The machine will yield $1500 in revenue anually for 6 years while an O and M expense of $500 is required every year of the machine's life.The machine is resold for $17000 at the end of 6 years.Draw the cash flow diagram.Assume the EOP discrete cash flows.
11- A project requires an initial cost of $15432.00. It results in savings that start at $2000.00 at the end of the 2nd year and the savings increase by $1000.00 every year from then on until the end of 6 years. What is the rate of return on this project? a) 6% b) 7% c) 8% d) 9%
4. Graphitia Design Company considers purchasing a computer system. The initial capital cost of the computer system is $3.6M. It can be used for 5 years, and that it will be sold for $23,000 at the end of year 5. It is estimated that a total of 4 officers' salary can be saved annually. The yearly staff cost of an officer is $330K. The system maintenance cost is fixed at $400K per year. (a) Prepare a table for the cash flow of the purchase. (b) Calculate the NPV of the purchase based on the cost of capital at 6%. (c) Is this a good investment for Graphitia? Explain.
Solve using Excel. Show all the formula. The Financial Advisor is a weekly column in the local newspaper. Assume you must answer the following question. “I need a new car that I will keep for 4 years. I have three options. I can (A) pay $32,999 now, (B) make monthly payments for a 7% 4-year loan with 0% down, or (C) make lease payments of $425 per month for the next 4 years. The lease option also requires an up-front payment of $3500. What should I do?” Assume that the number of miles driven matches the assumptions for the lease, and the vehicle’s value after 4 years is $14,500. Remember that lease payments are made at the beginning of the month, and the salvage value is received only if you own the vehicle.(a) Develop a choice table for nominal interest rates from 0% to 50%. (You do not know what the reader’s interest rate is.)(b) If i = 8%, which option should be chosen?
You received a $5,000 inheritance. You would like to use the money as a down payment for a new house in 5 years. The investment vehicle you chose would have a 10% rate of return, compounded quarterly. How much will you have in 5 years?
Plz solve this in maximum 20 min now
Current Attempt in Progress A small manufacturer has net annual cash flows as follows over the first 4 years of business. The applicable interest rate varies from year to year. End of Year Cash Flow Interest Rate During Year 0 Present Worth -$100,000 Future Worth Click here to access the TVM Factor Table calculator. $ 1 $ $80,000 Uniform Series Annual Equivalents $ 4% 2 3 -$15,000 $70,000 6% Determine the present worth, future worth, and uniform series annual equivalents for each of the 5 flows in the series. Determine a uniform series from t=0 to t=4. 5% 4 $130,000 4%
You decide to put $500 in a retirement account every 6 months for the next ten years. Assuming that the account pays 5% interest and compounds semi-annually, how much will you have at the end of ten years?
No excel, full work thanks
Don't use ai to answer I will report your answer. Solve it Asap with explanation and calculation

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