ECOR 3800 Lecture Notes - Lecture 21: Cash Register

• School: Carleton University
• Department: Engineering Common Core Courses
• Course: ECOR 3800
• Professor: Muslim Majeed

Document Summary

The remainder will cover equipment costs and facility overhead. The initial (immediate) equipment and facility cost is ,000. Each subsequent year, this figure will drop by ,000 until a cost of ,000 is reached, after which the costs will remain constant until the end of the project. Draw a cash flow diagram to illustrate the cash flows for this situation. At an interest rate of 12 percent, what is the total future worth of all project payments at the end of the eight years? (a) (b) and the constant portion of. Es ,= 40 0 ( a1912% , 5) ( fia , 1%5 ) , 6) ( f/bn% , 7) t ( fip , 12% 4. 42 nighhigh newsagent wants to replace its cash register and is currently evaluating two models that seem reasonable. The information on the two alternatives, cr1000 and. Annual maintenance in year 1, increasing by cost each year thereafter.