Question
Question 5 (10 points) Based on the data provided and using an interest rate of 5% per year , the correct equation to calculate the
Question 5 (10 points)
Based on the data provided and using an interest rate of 5% per year, the correct equation to calculate the Capital Recovery CR of Machine D is:
- CRD= 75,000(P/A, 5%, 6) + 25,000(F/A, 5%, 6)
- CRD= 75,000(A/P, 5%, 6) + 25,000(A/F, 5%, 6) 10,000
- CRD= 75,000(A/P, 5%, 6) + 25,000(A/F, 5%, 6) 10,000(A/P, 5%, 6)
- CRD= 75,000(A/P, 5%, 6) + 25,000(A/F, 5%, 6)
Question 6 (10 points)
Based on the data provided and using an interest rate of 5% per year, the Capital Recovery CRof Machine D is closest to:
(All the alternatives presented below were calculated using compound interest factor tables including all decimal places)
- CRD= $11,101
- CRD= $18,452
- CRD= $24,776
- CRD= $14,777
Question 7 (10 points)
Based on the data provided and using an interest rate of 5% per year, the correct equation to calculate the Annual Worth of Machine D is:
- AWD= 75,000(P/A, 5%, 6) + 25,000(F/A, 5%, 6) 10,000
- AWD= 75,000(A/P, 5%, 6) + 25,000(A/F, 5%, 6) 10,000
- AWD= 75,000(A/P, 5%, 6) + 25,000(A/F, 5%, 6) 10,000(A/P, 5%, 6)
- AWD= 75,000(A/P, 5%, 6) + 12,000(A/F, 5%, 6) 15,000
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Practical Finance For Property Investment
Authors: Craig Furfine
1st Edition
036733304X, 978-0367333041
