You invest in a piece of equipment costing $42,000. The equipment will be used for two years, and it will be worth $17,000 at the end of two years. The machine will be used for 4,100 hours during the first year and 6,100 hours during the second year. The expected savings associated with the use of the piece of equipment will be $27,000 during the first year and $42,000 during the second year. Your interest rate is 11%. Click the icon to view the interest factors for discrete compounding when i = 11% per year. (a) What is the capital recovery cost? The capital recovery cost is $ (Round to the nearest dollar.)

Clorox is thinking about introudcing a new brand of cleaning products. Marketing and developing the new products will cost 585 million dollars. In one year, the new products will generate a cash flow of 32 million dollars. In two years, the new products will generate a cash flow of 59 million dollars. In three years, the new products will generate a cash flow of 83 million dollars. After that, cash flows are expected to grow by 2% forever. If the cost of capital is 11%, what is the NPV of this project (in millions)? (Enter your answer in millions. i.e. 5.5 million, not 5,500,000 )

Question 2 A common economic analysis objective is to find out whether it is more profitable to purchase an asset rather than rent it. A simple case of this dilemma is currently being analyzed by a private company which wants to procure a pick-up truck for regular operation. For the next 24 months, the truck can be leased or purchased. The truck costs $9,500 if purchased now in cash. If leased, the monthly lease is $358 with the first payment due by the end of the first month. At the end of the lease term, 24 months, the truck is returned to the auto dealer with expected final repair cost of $1,000 to be paid immediately before return to dealer. If purchased, the truck can be financed through monthly payments. The financing nominal interest rate is to be negotiated with the dealer. The financing will require $2,000 down payment (paid now) and monthly payments starting at the end of the first month. After 24 months, it is expected to be worth half its purchase price. [a] Over what range…

Determine the present value P you must invest to have the future value A at simple interest rate r after time t. A = $6000.00, r = 9.0%, t = 26 weeks (Round to the nearest cent.)