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Question 2 PartA Twenty years ago a benefactor invested $50,000 for you. What is the current actual value of that investment today if the money
Question 2 PartA Twenty years ago a benefactor invested $50,000 for you. What is the current actual value of that investment today if the money was invested in a fund with a 6% market interest rate? Question 2 Part A: Identify the correct Function Notation for this scenario. 0 50,000(P/ F, 6%, 20) O 5000 (1+0.06) O 50,000(F/ P, 6%, 20) O 50,000(1-0.06)"20 Question 2 Part B Twenty years ago a benefactor invested $50,000 for you. What is the current actual value of that investment today if the money was invested in a fund with a 6% market interest rate? Question 2 Part B: Provide the answer from part "A". Enter your answer in the form: 12345.67 Question 2 Part C Twenty years ago a benefactor invested $50,000 for you. If the inflation rate is 2.5% per year, what is the constant (real, inflation-free) dollar value of your investment today? Question 2 Part C: Identify the correct Function Notation for this scenario. O 50000(F/P, 6%, 20) O (answer from Part B)*(P/F, 2.5%, 20) O (answer from Part B)*(P/F, 3.41%, 20) O 50000(P/F, 3.41%, 20)Question 2 Part D Twenty years ago a benefactor invested $50,000 for you. If the ination rate is 2.5% per year, what is the constant (real, ination-free) dollar value of your investment today? Question 2 Part D: Provide the constant (real, ination-free) dollar value of your investment today. Enter your answer in the form: 12345.67 Question 4 Part E A manufacturing company has the choice of two suppliers to buy a piece of equipment from to use in its process. Characteristics of these two suppliers and associated costs are tabulated below. The equipment from supplierA costs more to buy and maintain, but it also has more revenue per unit sold. Selling enough units will at some point make it worth the higher cost. How many units per year must the company sell in order to justify using supplierA (i.e. what is the breakeven number of units to sell)? Use an interest rate of 12% per year. Supplier A Supplier B Initial cost $4,000 $3,000 Sale price (revenue per unit) $4 $3 Transportation costs (per unit) $0 $1.25 Annual maintenance cost $1,400 $1,100 Salvage value $800 $700 Useful life of the equipment (years) 5 4 Question 4 Part E: How many units per year must the company sell in order to justify using supplier A? Enter your answer in the form: 12345.67
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