Foundations Of Finance
Foundations Of Finance
10th Edition
ISBN: 9780134897264
Author: KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher: Pearson,
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Chapter 17, Problem 11RQ
Summary Introduction

To determine: EOQ model assumptions.

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You want to buy equipment that is available from 2 companies. The price of the equipment is the same for both companies. Gray Media would let you make quarterly payments of $1,430 for 7 years at an interest rate of 1.59 percent per quarter. Your first payment to Gray Media would be today. River Media would let you make monthly payments of $X for 8 years at an interest rate of 1.46 percent per month. Your first payment to River Media would be in 1 month. What is X? Input instructions: Round your answer to the nearest dollar. 59
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You plan to retire in 7 years with $X. You plan to withdraw $54,100 per year for 15 years. The expected return is 13.19 percent per year and the first regular withdrawal is expected in 7 years. What is X? Input instructions: Round your answer to the nearest dollar. SA
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