Calculate the future worth of the purchase shown below using an interest rate of 5% per...

Calculate the future worth of the purchase shown below using an interest rate of 5% per year. First Cost: -$21,000 Operating Cost: -$3,000/YR Salvage Value: $3,000 Useful Life: 3 Years

Expert Solution

Future worth is $30768. Pls see calculations below.

T	Investment	Operating Cost	Salvage Value	Total CF (sum of all three)	Future Worth = Total CF x (1.05)^(3-t), where 1.05 = 1+rate of interest, and t = time
0	-21,000			-21,000	-24,310
1		-3,000		-3,000	-3,308
2		-3,000		-3,000	-3,150
3		-3,000	3,000	-	-
Total	-21,000	-9,000	3,000	-27,000	-30,768

Rahul Sunny answered 2 years ago

Compute the future worth of alternative P shown below, using an interest rate of 8% per...

Compute the future worth of alternative P shown below, using an interest rate of 8% per year using LCM method P Q First cost, $ -23,000 -30,000 Annual operating cost, $ per year -4,000 -2,500 Salvage value, $ 3,000 1,000 Life, years 3 6

Calculate the future value of$3,000 in a.Four years at an interest rate of 5 % per...

Calculate the future value of$3,000 in a.Four years at an interest rate of 5 % per year. b.Eight years at an interest rate of 5% per year. c. Four years at an interest rate of 10% per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)?

Calculate the future value of $ 9,000 in a. 5 years at an interest rate of...

Calculate the future value of $ 9,000 in a. 5 years at an interest rate of 5 % per year. b. 10 years at an interest rate of 5 % per year. c. 5 years at an interest rate of 10 % per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)?

Calculate the future value of $6,000 in a. 5 years at an interest rate of 10%...

Calculate the future value of $6,000 in a. 5 years at an interest rate of 10% per year (round to the nearest dollar) b. 10 years at an interest rate of 10% per year (round to the nearest dollar) c. 5 years at an interest rate of 20% per year (round to the nearest dollar) d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? (choose from the...

1. Calculate the future value of an investment worth $2800 that pays 1.5% simple interest rate...

1. Calculate the future value of an investment worth $2800 that pays 1.5% simple interest rate after 4 years. 2. Derek invested $1000. What would that money grow to in 18 months at a 5% annual simple interest rate? REAL QUESTIONS(IGNORE 1&2) 3. $7500 is deposited at a bank account that pays 3% interest compounded monthly. How much will the account worth after 5 years? 4. Amira deposited $2,000 into a savings account earning 2.6% APR compounded quarterly. How much...

FOR EACH OF THE CASES SHOWN IN THE TABLE BELOW, CALCULATE THE FUTURE VALUE OF THE...

FOR EACH OF THE CASES SHOWN IN THE TABLE BELOW, CALCULATE THE FUTURE VALUE OF THE SINGLE CASH FLOW DEPOSITED TODAY THAT WILL BE AVAILABLE AT THE END OF THE DEPOSIT PERIOD IF THE INTEREST IS COMPOUNDED ANNUALLY, SEMI ANNUALLY AND QUARTERLY AT THE RATE SPECIFIED OVER THE GIVEN PERIOD. CASE CASH FLOW INTEREST RATE DEPOSIT PERIOD (YEARS) ORDINARY ANNUITY ANNUITY DUE A $750 8% 10 B $3,250 12% 8 C $9,500 16% 20 D $10,000 20% 4

Calculate the future value of $2000 invested at 5% annual simple interest rate over a period...

Calculate the future value of $2000 invested at 5% annual simple interest rate over a period of 5 years 5% annual interest rate compounded yearly over a period of 5 years where the is no withdrawal from the account 5% annual interest rate compounded semiannually over a period of 5 years when there is no withdrawal from the account. When we gain more? Explain why?

Using information from Question 5, determine the better option at interest rate 10% using Present Worth...

Using information from Question 5, determine the better option at interest rate 10% using Present Worth Analysis. Please solve using Excel if possible. Question 5: Consider the following two alternatives that have no salvage value: A B Initial Cost Uniform Annual Benefits Useful life, in years $15,000 $3,000 8 $5,100 $1,800 4

If a deposit of $2,500 per month was made for the next 3 years, determine the future worth of the deposit at an interest rate of 10% per year, compounded continuously?

Two mutually exclusive alternatives have the estimates shown below. Use annual worth analysis to determine which should be selected at an interest rate of 13% per year.

Two mutually exclusive alternatives have the estimates shown below. Use annual worth analysis to determine which should be selected at an interest rate of 13% per year.QRFirst Cost$-40,000$-80,000AOC per Year$-9,000$-10,000 in year 1, increasing by $1,000 per year thereafterSalvage Value$1,000$8,000Life2 years4 yearsAlternative (Click to select) Q R should be selected.

Question