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QUESTION 6 If my bank pays 4% interest and inflation is 3 % what is my real interest. 9% 93% 97% 1% QUESTION 7 I

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QUESTION 6 If my bank pays 4% interest and inflation is 3 % what is my real interest. 9% 93% 97% 1% QUESTION 7 I can buy a Harley Davidson now for $22,000 or wait 3 years when the rate of inflation of 3.5 % will make that Harley cost 23,791 24,391 26,401 27,355 QUESTION 8 A company is replacing a machine. They want to make a profit of 10% per year how much can they spend based on the following: Yea Profit 5000 2 5500 3 6000 4 6500 15,789 18,039 19,125 19,896 QUESTION 9 A company is replacing a machine. They want to make a profit of 10% per year how much can they spend based on the 19,023 21,077 23,146 25,158 QUESTION 10 A new company plans to lose money for the first 5 years of its existence. They think they will lose 4,000, 000 in year 1 and the losses are expected to decrease by 150,000 per year for the next three years At 8% MARR what is the annual worth of their losses. 2,985,650 3,098,987 3,444,066 3,789,363

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