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Chevron Phillips has put into place new laboratory equipment for the production of chemicals; the initial cost is $ 1 , 8 0 0 ,
Chevron Phillips has put into place new laboratory equipment for the production of chemicals; the initial cost is $ installed. Chevron Phillips borrows of all capital needed, and the borrowing rate is over years. The throughput rate for inprocess test samples has increased the capacity of the lab, with a net savings of $ per year. Depreciation follows MACRSGDS, MARR is and the planning horizon is years with a salvage value of $ at that time. Use Goal Seek or Solver in Excel to determine the value of X such that MARR is exactly achieved, no more and no less, if:
a The loan is paid back using Method interest only at the end of each year of the loan, plus principal at the end of the last year
b The loan is paid back using Method equal annual principal payments plus interest on the unpaid loan balance
c The loan is paid back using Method equal annual principal plus interest payments during each year of the loan
d The loan is paid back using Method principal plus interest is paid at the end of the loan period
An important step in this problem is determining the principal and interest payments on the loan for the laboratory equipment. Method has interest only at the end of each year of the loan plus principal at the end of the last year. Method has equal principal payments plus interest on the unpaid loan balance. Method has equal annual principal plus interest payments during each year of the loan. Method has principal plus interest is paid at the end of the loan period. They financed of the $ at per year over years and keep it for years. Based on this information, fill in the following chart:
tableEOYMethod Method Method Method Principal,Interest,Principal,Interest,Principal,Interest,Principal
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