You purchase a new piece of equipment that cost $1,500,000. The machine will save you $310,000 each year for six years, and they can sell the machine for $100,000 at the end of year The companys cost of capital (investment return) is expected to be 6.2%. Is the equipment worth purchasing?

You recently did your finances, and realize you can afford a monthly payment of $1,134 for a house. The current mortgage rates are 5.7% annual rate, and most mortgages are for 30 years, so how much of a house can you afford?

You are 20 years old and you want to have $1,500,000 by the time you are 62 years old. You believe by putting money in the stock market you can earn 7.8% return. How much should you put in each year to reach this goal?