Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Longhorn Fabricators Inc. plans to expand its metals-forming facility over the next 7 years. The company will add 20,000 square feet to its 100,000 -square-foot
Longhorn Fabricators Inc. plans to expand its metals-forming facility over the next 7 years. The company will add 20,000 square feet to its 100,000 -square-foot plant as it adds robotic welding units, additional laser technology, and automated loading facilities. Construction at the plant is expected to start by the end of next year. The company expects to pay equal payments of $35,000 every month over the 7 -year period. What is the future value of the total improvement cost, if the interest rate is 21% per year, compounded every quarter? What is the future value of the total improvement cost, if the interest rate is 21% per year, compounded every week? Support your solution with comprehensive cash flow diagram. A) Show your complete factor equations to solve this problem for two different compounding as stated above. Show the exact value of effective interest rate yaou will be using to solve the factor notation. For example, your factor notation shall look something like this 10,000(F/P,1.45%,8) Longhorn Fabricators Inc. plans to expand its metals-forming facility over the next 7 years. The company will add 20,000 square feet to its 100,000 -square-foot plant as it adds robotic welding units, additional laser technology, and automated loading facilities. Construction at the plant is expected to start by the end of next year. The company expects to pay equal payments of $35,000 every month over the 7 -year period. What is the future value of the total improvement cost, if the interest rate is 21% per year, compounded every quarter? What is the future value of the total improvement cost, if the interest rate is 21% per year, compounded every week? Support your solution with comprehensive cash flow diagram. A) Show your complete factor equations to solve this problem for two different compounding as stated above. Show the exact value of effective interest rate yaou will be using to solve the factor notation. For example, your factor notation shall look something like this 10,000(F/P,1.45%,8)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started