Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are available and their information is given below. (perform all calculation using 5 significant figures, and give your final answer to 1 decimal place). (a) What is Kiwidale's MARR that makes the two alternatives equivalent? Use a present worth comparison. Smoothie 17,000 Creamy 40,000 12 years 12,000 3,920 5,400 First Cost Service Life Annual profit Annual operating cost Salvage value A MARR which makes the two alternatives equivalent in term of PW is 12 years 4,800 1,200 2,450

Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are available and their information is given below. (perform all calculation using 5 significant figures, and give your final answer to 1 decimal place). (a) What is Kiwidale's MARR that makes the two alternatives equivalent? Use a present worth comparison. Smoothie 17,000 Creamy 40,000 12 years 12,000 3,920 5,400 First Cost Service Life Annual profit Annual operating cost Salvage value A MARR which makes the two alternatives equivalent in term of PW is 12 years 4,800 1,200 2,450

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.2: Investing: Taking Risks With Your Savings

Problem 4R

See similar textbooks

Similar questions

Q.30) A $100,000 investment is make over a 10-years period. A return of $23,000 occurs at the end of the first year. Each successive year yields a return that is $2,000 les than the pervious year's return. If the money is worth 8%, what is the equivalent present worth for the investment? What is the equivalent annual worth for the investment? What is the equivalent future worth for the investment?
Describe the Present-Worth Analysis?
True or False 1. For any economy study based on our discussions, it is always necessary to determine the profit to evaluate thebetter/best alternative.2. If simple interest is evaluated, then the interest obtained will always be directly proportional to the number of years assuming that a constant interest rate is used throughout these years.
Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are available and their information is given below. (perform all calculation using 5 significant figures, and give your final answer to 1 decimal place). (a) What is Kiwidale's MARR that makes the two alternatives equivalent? Use a present worth comparison. Smoothie Creamy First Cost 16,000 39,000 Service Life 12 years 12 years Annual profit 4,900 12,600 Annual operating cost 1,200 3,820 Salvage value 2,450 5,400 A MARR which makes the two alternatives equivalent in term of PW is ____________ %
Solve the given question using PRESENT worth method and Future worth method
Find future worth only!!!!!
An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $350 at the end of Year 5, and $600 at the end of Year 6. If other investments of equal risk earn 7% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent.
FE: Suppose you have $100,000 in a mutual fund which is paying 9% per year. You want to save until you have $300,000 in the account and then pay cash for a house. How long will you have to wait, approximately? Question 12 options: 13 years 9 years
Benjamin receives an annual bonus of $1,000 and wants to invest it in an account that earns interest for the next 3 years. Below are the two options that he is considering putting his money into. Which of the following statements is true? NEED ASAP PLS. Benjamin receives an annual bonus of $1,000 and wants to invest it in an account that earns interest for the next 3 years. Below are the two options that he is considering putting his money into. Which of the following statements is true? Bank A 5% Simple Interest Bank B 5% Interest Compounded Annually Simple Interest: /= Prt; Compound interest A=P(1+r): After 3 years, Bank B will pay Benjamin $1875 more than Bank B. After 3 years, Bank B will pay Benjamin $3000 more than Bank A. After 3 years, Bank B will pay Benjamin $1007.63 more than Bank A. After 3 years, Bank B will pay Benjamin $7.63 more than Bank A. After 3 years, Bank A will pay Benjamin $10.13 less than Bank B.
Down payment Annual payments Years Discount rate plan A 1.297.19 5.342.38 20 12% What is the present value of plan B? plan 8 2.869.46 7.761.18 20 12% $278.29 9.449.95 20 12%
Q19 solutio n neded
Question 1 Due to health reasons, Dave is considering early retirement. He currently has $700,000 in a self- managed retirement fund. He thinks he will need S40,000 per year during retirement. He intends to invest his retirement in a low-risk mutual fund which return 1.5% per year. How many years can he live off this retirement fund without the need to look for a job?