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Please solve them all clearly The following assignments have three immediate objectives. They are (a) to provide practice in drawing cash-flow diagrams; (b) to provide

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The following assignments have three immediate objectives. They are (a) to provide practice in drawing "cash-flow diagrams"; (b) to provide familiarity with some "economic equivalence functions" and their mnemonic notation: (c) to train you in the use of the attached "Present value function" graph. For each of the problems listed below you are asked to arrange your solution as follow: (i) Draw a cash-flow diagram that portrays all relevant information and that identifies the unknown variable. Use square grid paper, a ruler, and colors where helpful. Grade depends in part on neatness. (ii) Then present the economic equivalence function required, showing first the mnemonic notation and its numerical value estimated with the aid of the attached graph. Second present the appropriate equation and the computed numerical value of the functions. (iii) Present the computations for obtaining the problem solution. What is the present worth of January 1, 1968 of $1295 on January 1, 1975, if interest is at 6% How much would you have to invest at 6% interest on January 1, 1975 in order to accumulate $1850 on January 1, 1981? If 1000 ($) is invested at 6% compound interest in January 1, 1971, how much will be accumulated by January 1, 1981? What is the present value of a series of 10 deposits of 200 ($/yr) made at the end of each year if the first deposit is made in 1968? How much will be accumulated in a fund, earning 8% interest, 10 years after the first deposit of $118 is deposited. Deposits are made at the end of each year for 10 years. At what rate of interest compounded annually will an investment of $10,000 triple itself in 8 years? What is the equivalent annual payment series of that $10,000 at that interest rate? How much invested now at would be just enough to provide for four lump sum payments of $6000 at t = 5, 10, 15, and 20? Make this problem in two different ways. Method use only single amount equivalence factors. Method use only uniform series equivalence factors. A bank offers depositors daily compounding of interest. It advertizes the nominal interest as being 6.5%. Compute the equivalent annual uniform series of incomes someone could count on for 20 years if deposited 1,000,000($) The operating expenses for a road building machine are 4000 ($/year) 2, 1000 ($/yr) in year 3, 1500 ($/yr) in year 4, and so on. What is the present value of the machine if its purchase price new is 30,000 ($)? (r = 5%) What is the annual equivalent cost of a two-component system that is to function 30 years? Component #1 has a life of 15(yr) and requires 1000($/yr) in OMR-costs. Its purchase price new is $30,000 and its salvage value, SV, is 20x of the purchase price. Component #2 is expected to be unserviceable after 10 years to require 500($/yr) in CMR-costs. Its purchase price is $18,000 and it has zero salvage value.(r - 7%)

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