(PROBLEM #4 - 25 marks) Your company has a $500,000. loan for a new robotic machining center it just bought. The interest rate for this loan is 6% per year and your company's initial plan is to pay for the loan in exactly 30 years. Annual payment is made at the end of each year. ( ) What is the Annual Payment your company has to pay at the end of each year? (a) $41,350 (b) $45,000 (c) $6,325 (d) $16,667 (e) $36,325 Based on the initial annual payment calculated above, your company has now decides that it can afford to pay $50,000 per year, which is more than the initial annual payment. ( ) By paying $50,000 annually, after how many payments (years) will the loan of $500,000. be paid off? Assuming the same interest rate is used, i.e. 6% annually. (a) 14 years (b) 15 years (c) 16 years (d) 17 years (e) 18 years ( ) By paying $50,000 annually, how much is the last payment. (a) $50,000 (b) $14,390 (c) $40,010 (d) $36,556 (e) $16,537 According to the loan, this robotic machining center's present worth is $500,000. We estimate that this machining center has a life of 20 years with zero salvage value at the end of the 20 years. ) Using the straight-line depreciation model, what is the book value of this machining center at the end of the 5th year? (a) $125,000. (b) $375,000. (c) $200,000. (d) $100,000. (e) $400,000. ( ) Using the declining-balance depreciation (DBD) model with d=10%, what is the depreciation charge in the 5th year? (a) $32,805. (b) $29,525. (c) $295,245. (d) $204,755.