One thousand dollars is invested for 5 years in an account that pays 6% compounded semiannually. Inflation is 4%. What is the year-0 dollar value of the account at the end of the 5 years? An environmental laboratory buys R&D instruments for $1, 500,000. If the instruments are acquired, the laboratory expects annual revenues to be $100,000. In 10 years, the instruments can be sold to a local university for $250,000. The laboratory owners want to know the 2^nd year's tax. The laboratory must use MACRS depreciation and its accountant advises using a 35% tax rate and incorporating an annual inflation rate of 2%. What is the 2^nd year's tax and is it constant or nominal dollars. Consider a candy dispensing machine whose cash flow begins with a $1750 first cost then generates $385 annual revenue for 25 years. There is a one-time-refurbishment cost of $962.50 at year-7 and a salvage of $525. (a) What is the payback period? (b) What is the annual breakeven revenue? The first cost for a capital asset is $100,000. The salvage value is $40,000 after its 8-year useful life. Based upon double declining balance, what is (a) the depreciation charge and (b) the book value in the 4^th year. One-hundred thousand dollars is deposited into an account whose interest is compounded quarterly. The deposited amount compounds to two-hundred-and-fifty thousand dollars in five years. What is the nominal annual interest rate