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You expect to receive the following: $4,398 at the end of each year for 12 years $22,256 today $3,954 at the end of year 6 $989 at the end of each year forever $10,052 at the end of 15 years

You expect to receive the following: $4,398 at the end of each year for 12 years $22,256 today $3,954 at the end of year 6 $989 at the end of each year forever $10,052 at the end of 15 years

Essentials Of Investments
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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You expect to receive the following: $4,398 at the end of each year for 12 years $22,256 today $3,954 at the end of year 6 $989 at the end of each year forever $10,052 at the end of 15 years What is the uniform annual payment for the first 12 years equivalent to the above payment scheme, if the interest rate is 8%? Enter your answer as follow: 123456
Transcribed Image Text:You expect to receive the following: $4,398 at the end of each year for 12 years $22,256 today $3,954 at the end of year 6 $989 at the end of each year forever $10,052 at the end of 15 years What is the uniform annual payment for the first 12 years equivalent to the above payment scheme, if the interest rate is 8%? Enter your answer as follow: 123456
The initial cost of a pickup truck is $11,209 and will have a salvage value of $4,228 after five years. Maintenance is estimated to be a uniform gradient amount of $186 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.36 per mile for 207 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck? Enter your answer as follow: 123456
Transcribed Image Text:The initial cost of a pickup truck is $11,209 and will have a salvage value of $4,228 after five years. Maintenance is estimated to be a uniform gradient amount of $186 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.36 per mile for 207 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck? Enter your answer as follow: 123456
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