A trust fund is to be established for three purposes (1) To provide $750,000 for the construction
Question:
A trust fund is to be established for three purposes
(1) To provide $750,000 for the construction and $250,000 for the initial equipment of a small engineering laboratory;
(2) To pay the $150,000 per year laboratory operating cost; and
(3) To pay for $100,000 of replacement equipment every 4 years, beginning 4 years from now. At 6% interest, how much money is required in the trust fund to provide for the laboratory and equipment and its perpetual operation and equipment replacement?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
The trust fund has three components 1 P 1 million 2 For n P A i 150000006 25 millio...View the full answer
Answered By
Mallik Rao
I have great passion for mathematics subject. I love teaching math. Coming to my qualification I am a post graduate mathematics teacher with over 15 years of teaching experience. I have taught in different colleges to various levels of students. I have been tutoring mathematics subject privately at home to various students as a freelancer for various tutoring organizations. I treat my students as participants in learning not as a receivers of fixed body of knowledge. To be precise, my classes are more interactive and sure that you will get a happy experience and gain confidence in the subject and be motivated to learn the subject. Last but not the least, hard work has no substitute. So practice, practice and practice it only makes you perfect in math.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
A trust fund is to be established for three purposes: (1) To provide $750,000 for the construction and $250,000 for the initial equipment of a small engineering laboratory; (2) To pay the $150,000...
-
A control chart for nonconformities is to be established in conjunction with the final inspection of a radio. The inspection unit is to be a group of ten radios. The average number of nonconformities...
-
A fraction nonconforming control chart is to be established with a center line of 0.01 and two-sigma control limits. (a) How large should the sample size be if the lower control limit is to be...
-
In a test on 2000 electric bulbs, it was found that the life of a particular make was normally distributed with an average life of 2040 hos & S.D of bohos Estimate the ne of likely to burn for it...
-
What are the responsibilities of the engaged follower?
-
Jalapenos! is based in Pleasant Hill, California. The merchandising company has three divisions: Clothing, Food, and Spices. The Clothing division has two main product lines: T-shirts and...
-
The following information is taken from the annual report of The Claremont Corporation: The company uses the LIFO method to value its inventory. In addition, the footnotes to the companys annual...
-
Multiple product break-even analysis Eaton Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Eaton expects to incur annual fixed costs of...
-
Brain science is often brought up in relation to the legal system. Based on what you know, at what age do you think a person should be considered an adult and legally faced with adult consequences...
-
You are the Owners project manager on an electrical upgrade project. Existing overhead power lines are being buried in a duct bank to hide them from view in an area of the town that is being...
-
A depositor puts $25,000 in a savings account that pays 5% interest, compounded semiannually. Equal annual withdrawals are to be made from the account, beginning one year from now and continuing...
-
The local Audubon Society has just put a new bird feeder in the park at a cost of $500. The feeder has a useful life of 5 years and an annual maintenance cost of $50. Our cat, Fred, was very...
-
Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2016, for $450,000. At that time, Score Company had stockholders? equity consisting of common stock,...
-
A boy is playing in a tree house in his fenced backyard and throws a ball. The ball\'s inital velocity is 9 . 5 m / s angled 3 2 degrees above the horizontal and released 2 . 4 m above the ground. If...
-
Blaser Inc. is a public company that trades on the Toronto stock exchange. It is a supplier of many of the most commonly used pharmaceuticals in Canada. In the last few years the company's growth has...
-
You have a $ 9 0 , 0 0 0 ten - stock portfolio with a beta of 1 . 2 5 . If you add $ 1 5 , 0 0 0 worth of Stock A ( beta = 1 . 3 8 ) to this portfolio, the resulting portfolio would have a beta of:...
-
ground? A pilot flying low and slow drops a weight; it takes 1.8 s to hit the ground, during which it travels a horizontal distance of 150 m. Now the pilot does a run at the same height but twice the...
-
Wildhorse Company purchased, on January 1, 2025, as a held-to-maturity investment, $87,000 of the 9%, 5-year bonds of Handley Corporation for $80,569, which provides an 11% return. Prepare...
-
Nurses have a duty to report physician negligence.
-
Pearl Medavoy will invest $10,240 a year for 20 years in a fund that will earn 10% annual interest. . If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If...
-
Management books tend to reflect the positive side of management theories, but it is important that students of management realise that management theories arent the same as scientific principles...
-
A company just purchased an intelligent robot, which has a first cost of $80,000. Since the robot is unique in its capabilities, the company expects to be able to sell it in 4 years for $95,000. (a)...
-
Animatics Corp. of Santa Clara, California, makes small servo systems with built-in controllers, amplifiers, and encoders so that they can control entire machines. The company purchased an asset 2...
-
A plant manager for a large cable company knows that the remaining invested value of certain types of manufacturing equipment is more closely approximated when the equipment is depreciated linearly...
-
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. Assume that in 2015, an auction house sold a statute at auction for a price of $10,584,500....
-
Johannesburg - Chile's CFR Pharmaceuticals said on Friday it would drop its $1.2bn bid for drugmaker Adcock Ingram [JSE:AIP] after being thwarted by Adcock's top shareholder. "Shareholders are...
-
Wilma is considering opening a widget factory. The unlevered cost of equity for making widgets is 0.13. This factory would cost $11 million to set up, and would produce EBIT of $3 million per year...
Study smarter with the SolutionInn App