Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What series of equal annual payments is equivalent to a series of decreasing payments as follows: 5000, 4000, 3000, 2000, 1000 is the interest rate

image text in transcribed
What series of equal annual payments is equivalent to a series of decreasing payments as follows: 5000, 4000, 3000, 2000, 1000 is the interest rate is 6%. (a) 3000 (b) 3000(1 + .06) = 3180 (c) (5000(F|P6%4) + 4000(F|P6%3) + 3000(F|P6%2) + 2000(F|P6%1) + 1000)/5 (d) 5000(F|P6%5) - 1000(A|G6%5) Consider a machine that has first cost of 150,000, has an operating and maintenance cost of 17, 500 per year and an estimate salvage value of 25,000 at the end of 30 years. Assume the interest rate is 6% per year. What is the future equivalent cost of the investment if the planning horizon is 30 years? (Costs are Negative, Salvage Value is positive). What series of equal annual payments is equivalent to a series of decreasing payments as follows: 5000, 4000, 3000, 2000, 1000 is the interest rate is 6%. (a) 3000 (b) 3000(1 + .06) = 3180 (c) (5000(F|P6%4) + 4000(F|P6%3) + 3000(F|P6%2) + 2000(F|P6%1) + 1000)/5 (d) 5000(F|P6%5) - 1000(A|G6%5) Consider a machine that has first cost of 150,000, has an operating and maintenance cost of 17, 500 per year and an estimate salvage value of 25,000 at the end of 30 years. Assume the interest rate is 6% per year. What is the future equivalent cost of the investment if the planning horizon is 30 years? (Costs are Negative, Salvage Value is positive)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditors For Stock Brokers

Authors: National Institute Of Securities Markets (NISM)

1st Edition

9350717581, 978-9350717585

More Books

Students also viewed these Accounting questions

Question

mple 10. Determine d dx S 0 t dt.

Answered: 1 week ago