Retreaded Tires plans to save $23,500, $24,500, $26,500, and $28,000 at the end of each year for Years 1 to 4, respectively. If it earns 2.1 percent on its savings, how much will the firm have saved at the end of Year 4? MUST SHOW FULL WORK (NO EXCELL) a. $100,878.30 b. $102,140.20 c. $111,860.57 d. $104,174.00 e. $105,608.11
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- 8Miller's Hardware plans on saving $40,000, $50,000, and $58,000 at the end of each year for the next three years, respectively. How much will the firm have saved at the end of the three years if it can earn 6% by reinvesting its saving? a. $155,944.00 b. $169,004.13 c. $148,000.00 d. $148,078.15Hello can you please walk me through how to do this the annual income is 20,000 It is wise to set aside 7.5% of gross monthly income for 401 k investment. Assume the investment earns a 5% annual return and use Excel to determine the balance after 40 years for the unskilled worker and for your expected income. Then use Excel to determine how many years it would take for the unskilled worker and for your expected investment to reach $500,000.A company is considering the end of the year rental of a copying machine that costs P 1,000 the first year, and increasing by P 200 every year there after up to the fifth year. What is the equivalent amount to be paid at the end of the first year of all the rentals? Use i = 10%. Choices:a. P 2,660b. P 5,163 c. P 5,679d. P 2,418 Show solution. Do not use excel. Ans C
- A company can earn 8.5% on amount deposited now. For an IT project, the company predicts to have these components costs: Yearl $25,000 Cost associated with year 1 reduced by 21% Cost associated with year augmented by 3% Year2 Year6 How much money should the company deposit now. At the end of each year, try to analyze the balance (the available amount of money against the inflow).Your company is planning to purchase a new loader for $20,937. If the company keeps the old loader, it will have $1,959 additional maintenance cost for the first year and increases $308 each year till the eighth year. Given the company's minimum attractive rate of return (MARR) is 6%, what is the present cost of keeping the old loader? 6% 1 2 3 4 5 879 6 9 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given F Given P F/P P/F 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1689 .9434 .8900 .8396 .7921 .7473 .7050 .6651 .6274 5919 Sinking Fund Factor Find A Given F A/F 1.0000 .4854 3141 .2286 .1774 .1434 .1191 1010 0870 Compound Interest Factors Uniform Payment Series Capital Recovery Factor Find A Given P A/P 1.0600 .5454 .3741 .2886 2374 2034 .1791 1610 1470 Compound Amount Factor Find F Given A F/A 1.000 2.060 3.184 4.375 5.637 6.975 8.394 9.897 11 491 Present Worth Factor Find P Given A P/A 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 6.802 Arithmetic…Jackson amp; Sons uses packing machines to prepare its products for shipping. One machine costs $178,000 and lasts about 5 years before it needs replaced. The operating cost per machine is $16,000 a year. What is the equivalent annual cost of one machine if the required rate of return is 12 percent? Select one: O O O O O a. $81,006.15 b. $65,378.93 c. $54,224.08 d. $79,004.12 e. $38,556.67
- COOR Ltd. is buying a new sewing machine for $9 000. It can be sold at the end of its 10 year service life for $800. The firm's MARR is 10%. What is the minimum annual savings that the machine must yield in order to break even on the investment? Select one: O A. $1 815 O B. $1 692 O C.$1 415 O D. $1 212 O E. $2 012Ansel Accounting Firm rents an office space for $250,000 per year which is due at the beginning of each year. If the hurdle rate of Ansel Accounting Firm is 10%, how much is the present value of five years' worth of rent? a. $1,042,466.36 b. $402,627.50 c. $155,230.33 d. $170,753.36You own a small machine shop. You would like to save $340, 000 to buy new equipment six years from now. The plan is to set aside an equal amount of money each quarter (every three months). How much should the firm save each quarter to achieve this goal if you can earn a 5.8% return? A. $10, 765.26 B. $8,396.17 C. $11, 945.79 D. $10,768.26 E $11,495.79
- If Yörsan Dairy Product's machine operating cost is $45,341 per year for years 1 through 3 and then it increases by 4 % per year through year 15, which one of the following is closest to the year-zero present worth of the machine operating cost at an interest rate of 12% per year? Select one: a. 356,038 b. 351,548 c. 375,935 d. 409,082 e. 316,206An industrial engineering startup pains to purchase software with payemnts $500 per year s starting in year 1 with and updagre cost, started in year 2, of 50, At an interest rate of 10 % per year, how much the startup should spend now to sponsore the software over five years. $491 $591 50 500 P₁ = ? 500 = 10% 2 550 600 650 700May I ask for an explanation and solution to the question for a better understanding. Thank you! 14. Your firm rents office space for P250,000 per year, due at the BEGINNING of each year. If your firm's hurdle rate is 10%, what is the present value of five years' worth of rent? a. P1,042,466.36 b. P170,753.36 c. P402,627.50 d. P155,230.33