time value of money & capital budgeting : managerial

AB 38 AC AD AF Exercise 3 39 If you invest $7000 each year for 40 years, how much will you have at the end of 40 years assuming a 9% annual retum? Submit your answer. 42 44 45 46 52 Exercise 4 53 If you want to withdraw $35000 each year for 30 years, how much would you need to have saved today to fund these withdrawals? (Assume a 7% annual return.) Submit your answer. 56 57 58 59 66 Exercise 5 If you purchase a machine and borrow $20000, what will your approximate monthly payment belf you pay back the loan over 5 years. Assume a 10% interest rate. 67 Submit your answer 70 71 72 73 74 Exercise 6 You are considering purchasing a new machine for $80000 that will save $15000 per year for 8 years. If cost of capital is 12%, what is the net present value (NPV) of buying the new machine? 81 Submit your answer 84 85 86 87 88 Should you purchase the machine? 91 PVA Table FVA Table 93 In-class - PR BYN