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Both questions please 6. Given the cash flows in table below. Determine the value of P. i= 3% per year Year Cash Flow 0 -P
Both questions please
6. Given the cash flows in table below. Determine the value of P. i= 3% per year Year Cash Flow 0 -P 1 100 2 200 3 300 4 400 5 400 A. $548,000 B. $676,000 C. $880,000 D. $1,550,000 8. Kal Tech Engineering Systems is considering buying a blow molding machine for its operation in Tennessee. It is estimated that the net benefits in year will be $50,000 and decreasing at the rate $5,000 for the next four years and stays at the same level as that of year 5 for the next 5 years. If MARR is 8%, determine the amount of money that the company can invest on this blow molding machine. Assume the salvage at the end of year 5 will be about 30% of initial cost. Year Cash Flow A. $495,615 0 -P 1 100 2 200 3 300 4 400 5 400 B. $516,500 C. $411,200 D $399,500Step by Step Solution
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