You are considering a large CNC equipment purchase. You will need an initial deposit of $165,000. The annual revenuesexpected to come from the use of the CNC equipment are $85,000 starting in year 1 increasing by $4,000 each year (i.e.$85,000 in year 1, $89,000 in year 2, etc.). Annual operating and maintenance costs are expected to be $35,000 every yearstarting in year 1. The equipment is expected to last for 15 years. What is the ROR?Question 6 Part A: Choose the correct Cash Flow Diagram for this scenario from the options below.Option A0i = +$4,000$85,000Option Bi = +$4,000$85,000012161215-$35000$35,000-$165000Option C$85,000G = $4,000$165,000$165,000Option D$89,000$85,000012151216$35,000-$35000-$165000

Answered: Image /qna-images/answer/657de5bc-89ef-41d1-a930-a9113af42cfb.jpg

Answered: You are considering a large CNC…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Marvin has P2,000 invested at 7% and P5000 invested at 3% simple interest rate. Determine the additional sum that must be invested at 5.5% to give him an overall annual return of 5%.
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You decide to open an individual retirement account (IRA) at your local bank that pays 8 %/year compounded annually. At the end of each of the next 40 years, you will deposit $4,000 into the account. Three years after your last deposit, you will begin making annual withdrawals. What annual amount will you be able to withdraw if you want the withdrawals to last: Click here to access the TVM Factor Table Calculator Part a 20 years? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±20. eTextbook and Media Part b Your answer is correct. 30 years? $ Save for Later Part c Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±20. eTextbook and Media Forever? $ 123104 Attempts: 2 of 3 used Save for Later Attempts: 0 of 3 used Submit Answer Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The…
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