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Cummins Crane Corporation (3C) is considering replacing its controllers on its heavy lift cranes with new portable infrared controllers. 3C expects to achieve cost savings
Cummins Crane Corporation (3C) is considering replacing its controllers on its heavy lift cranes with new portable infrared controllers. 3C expects to achieve cost savings of S15K the second year, increasing by S1500 each year thereafter for the next 4 years. Draw the Cash Flow Diagram (10 points) At an interest rate of 12% per year, what is the equivalent annual worth of the savings? (40 points) 1. a. b. 2. Given the nominal rate of 22% if compounded annually (10 points) What is the effective rate For the following compounding periods, fill in the blanks. Show your work beside each row for credit (5 points each row) a. b. # Compound Periods EAIR% Compound Period CSA CM CD C Hourly C Minutely C Secondly NIA
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