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Name Score 10. [10 points] Calculate the Equivalent Uniform Annual Benefit (EUAB) for the cash flow below for interest rate of 10% SOLVED IN CLASS

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Name Score 10. [10 points] Calculate the Equivalent Uniform Annual Benefit (EUAB) for the cash flow below for interest rate of 10% SOLVED IN CLASS (aa@den,e,W: 7aeo(fre-'o.M 11. [15 points] What is the Present worth (NPV) of this cash flow? 1400 1300 5000 1200 4500 SOLVED IN CLASS 4000 1000 3500 3000 012345611 10-11-12 12. [ 15 points] Using ONLY the 1% compound interest table, calculate how much one needs to save every month for 50 years to get a $4 million retirement assuming 12% interest rate compounding a. SOLVE FOR A USING: 4--( .., l , 4to) 4,000000:A(F/A1%,480)(F/P,1%,120)+A(F/A1%, 120) : A(11765 3.3004+230.0387) A $102.4 Instead of going with the old technology that costs $100,000 to buy with a salvage value of $10,000 after 10 years, and an annual operating and maintenance cost of $10,000 the company is considering a new technology. The new technology will cost $80,000. It has no operating and maintenance cost during its life of 10 years. What should be the minimum salvage value that will support the purchase of the new technology? Use 15% interest rate. b. IGNORE Name Score 10. [10 points] Calculate the Equivalent Uniform Annual Benefit (EUAB) for the cash flow below for interest rate of 10% SOLVED IN CLASS (aa@den,e,W: 7aeo(fre-'o.M 11. [15 points] What is the Present worth (NPV) of this cash flow? 1400 1300 5000 1200 4500 SOLVED IN CLASS 4000 1000 3500 3000 012345611 10-11-12 12. [ 15 points] Using ONLY the 1% compound interest table, calculate how much one needs to save every month for 50 years to get a $4 million retirement assuming 12% interest rate compounding a. SOLVE FOR A USING: 4--( .., l , 4to) 4,000000:A(F/A1%,480)(F/P,1%,120)+A(F/A1%, 120) : A(11765 3.3004+230.0387) A $102.4 Instead of going with the old technology that costs $100,000 to buy with a salvage value of $10,000 after 10 years, and an annual operating and maintenance cost of $10,000 the company is considering a new technology. The new technology will cost $80,000. It has no operating and maintenance cost during its life of 10 years. What should be the minimum salvage value that will support the purchase of the new technology? Use 15% interest rate. b. IGNORE

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