Question

In: Finance

A company will need $65,000 in 8 years for a new addition. To meet this​ goal,...

A company will need $65,000 in 8 years for a new addition. To meet this​ goal, the company deposits money in an account today that pays 9​% annual interest compounded quarterly. Find the amount that should be invested to total $65,000 in 8 years.

The company should invest $_________

Solutions

Expert Solution


Related Solutions

A company (the seller) provides software to customers for 8 years. In addition to the software,...
A company (the seller) provides software to customers for 8 years. In addition to the software, the company also provides the customer consulting services over the 8-year period. The total transaction price is $386,000. The company estimates the consulting services have a standalone value of $120,000 and the software license has a standalone value of $380,000. Assuming the performance obligations are separate, on the date the customer licensed the software, the company should record Unearned Service Revenue of $ ....
A new machine will be purchased today for $65,000, used for 4 years and sold. The...
A new machine will be purchased today for $65,000, used for 4 years and sold. The machine will be straight line depreciated for 8 years. The anticipated market value of the alpha machine in 4 years is $24,000. The tax rate is 31%. a) Calculate the book value of the machine after 4 years. b) Calculate the gain or loss on sale of the alpha machine. Calculate the tax effect of the gain or loss. c) What is the termination...
1. Now, assume that at the end of 8 years you take out $65,000 from the...
1. Now, assume that at the end of 8 years you take out $65,000 from the account. What is the account balance at the end of 15 years? The amount in the beggining account is 916206.92 You have a sub-contracting job with a local manufacturing firm. You receive end-of-year payments of $30,000/year for next 15 years. You deposit all that money in a bank that pays interest at 9.5%. (a) What will be your balance at the end of 15...
Talia’s Tutus bought a new sewing machine for $65,000 that will be depreciated over 5 years...
Talia’s Tutus bought a new sewing machine for $65,000 that will be depreciated over 5 years using double-declining-balance depreciation with a switch to straight-line. Required: a. Find the depreciation charge each year. b. If the sewing machine is sold after 3 years for $29,000, what will be the after-tax proceeds on the sale if the firm’s tax bracket is 35%?
Project L costs $65,000, its expected cash inflows are $14,000 per year for 8 years, and...
Project L costs $65,000, its expected cash inflows are $14,000 per year for 8 years, and its WACC is 14%. What is the project's payback? Round your answer to two decimal places.
You are a new RN in week 6 week of a 8-week orientation. The goal of...
You are a new RN in week 6 week of a 8-week orientation. The goal of these last two weeks is to increase your patient load to near a full load. Your assignment today involves caring for 4 patients. One of the patients, Mr. Smith, will be going home, one, Mrs. Jones, will be going to surgery at approximately 11:00 a.m. and two of them are post-op patients. One of the post-op patients has multiple tubes, lines and a dressing...
Juan Arancho has $12,000 and would like to double his money in 8 years. What rate would he need to earn to reach is goal?
Juan Arancho has $12,000 and would like to double his money in 8 years. What rate would he need to earn to reach is goal?   A.   9.0508%    B.   8.8548%    C.   8.7589%
A company is evaluating the addition of equipment to its present operations. They need to purchase...
A company is evaluating the addition of equipment to its present operations. They need to purchase equipment for $160,000. The 5-year MACRS GDS recovery method (see table 7.3) is appropriate for the investment and the total tax rate is 40%. Gross revenue is expected to be $30,000/YEAR while maintenance cost is expected to be $5,000/YEAR. It is expected that operations will shut down by the end of the 4th year with a salvage value of $20,000. Part A: Draw a...
Tampa Enterprises is considering the addition of a new product line.  The firm would not need additional...
Tampa Enterprises is considering the addition of a new product line.  The firm would not need additional factory space, but it would require the purchase of $2.45 million of equipment installed.  The equipment would be depreciated using a 7-year accelerated depreciation schedule.  Additional inventory of 13% of the projected increase in next year’s sales would be necessary prior to each year of operation, but the entire value will be recovered at the end of the project.  The firm expects to sell 340,000 units during...
Cleveland Enterprises is considering the addition of a new product line.  The firm would not need additional...
Cleveland Enterprises is considering the addition of a new product line.  The firm would not need additional factory space, but it would require the purchase of $2.45 million of equipment installed.  The equipment would be depreciated using a 7-year accelerated depreciation schedule.  Additional inventory of 13% of the projected increase in next year’s sales would be necessary prior to each year of operation, but the entire value will be recovered at the end of the project.  The firm expects to sell 340,000 units during...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT