Labco Scientific sells high-purity chemicals to universities, research laboratories, and pharma- ceutical companies. The company wants to invest in new equipment that will reduce shipping costs by better matching the size of the completed products with the size of the shipping container. The new equipment is estimated to cost $550,000 to purchase and install. How much must Labco save each year for 5 years in order to justify the investment at an interest rate of 8% per year? I=8% A=? 2 5 A= Represents savings every year $550,000 Problem 12: (10 points) What is the correct equation to save each year for 5 years in order to justify the investment at an interest rate of 8% per year? a) A=550,000(A/P,8%,5) b) A=450,000(A/P,10%,3) c) A=550,000 (P/A, 8%, 5) d) A 550 000 (P/A 5% 81 Problem 13: (10 points) What is the correct factor to save each year for 5 years in order to justify the investment at an interest rate of 8% per year? 3.9927 25046 40211 4.3295 Problem 14 (10 points) How much must Labco save each year for 5 years in order to justify the investment at an interest rate of 8% per year