Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer ALL that you can. Please show all detailed steps as well. s. Carrie Mathison plans to retire in 30 years. She intends to

Please answer ALL that you can. Please show all detailed steps as well. image text in transcribed
s. Carrie Mathison plans to retire in 30 years. She intends to contribute the same amount of money each year to her retirement fund. The fund earns 10% compounded annually. She would like to withdraw $100,000 each year for 20 years, starting one year after the last contribution is made. How much money should she contribute to her fund each year? 6. A new rail car costs $100,000 and is expected to last for twenty years, assuming that $20,000 is spent on a major overhaul at the end of year 10. Routine servicing and maintenance are expected to cost $2,000 per year. The car is expected to be used in revenue service for 300 days per year. What is the equivalent cost per-day-in-use over the twenty-year life of the car, assuming a discount rate of 10%? 7. An industrial firm uses an economic analysis to determine which of two different machines to purchase. Each machine is capable of performing the same task in a given amount of time. Assume the minimum attractive rate of return is 8%. Use the following data in this analysis. Initial cost Estimated life Salvage value Annual maintenance cost $150 Machine x Machine y $6000 S12,000 7 years 13 years none $4000 $175 Which, if either of the two machines should the firm choose based on equivalent uniform annual costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Managers And Entrepreneurs

Authors: Charles T. Horngren

8th Edition

1269778684, 9781269778688

More Books

Students also viewed these Accounting questions

Question

Different types of Grading?

Answered: 1 week ago

Question

Explain the functions of financial management.

Answered: 1 week ago

Question

HOW MANY TOTAL WORLD WAR?

Answered: 1 week ago

Question

Discuss the scope of financial management.

Answered: 1 week ago

Question

Assess the requirements for strategic LMD

Answered: 1 week ago

Question

How can e-learning benefit organizations and individuals?

Answered: 1 week ago