šŸ·ļø LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION ā†’
Log in
Economics
1
answer
0
watching
12
views
23 Nov 2019

A company is loosing 7 million dollars at the end of this year. It continues losing G dollars every year. At year 10 it looses 241 million dollars. The interest rate is 10%. What is the total present worth and with the total present worth, find the annual worth.

Watch
1
answer
0
watching
12
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Get unlimited access
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

A small town wants to acquire an electric generator facility for half a million dollars. It will cost approximately $5,000/year to maintain the facility. The maintenance costs will begin at the end of the third year, and the facility has an expected useful life of about 50 years. The interest rate is 7%.

1. What is the present worth of the capital and maintenance costs of the facility?

2. What is the EUAC (equivalent uniform annual cost) of the facility over its useful life?

Ā 

A Canadian University in the Western region is planning to build a new football stadium to solve the capacity problem it has with the current stadium. The construction will start in 2022 and is planned to take four years at a cost of $10 million per year. After construction is completed, the cost of operation, maintenance and repairs is expected to be $2 million for the first year, and to increase by 1% per year thereafter. Major overhauling (major repair) for the stadium is to take place during the year 2047 at a cost of $8 million. The salvage/scrap value of the stadium at the end of the year 2070 is estimated at $15 million. Consider the present to be the end of 2017/beginning of 2018 and the interest rate to be 6%.

a) Draw a cash flow diagram for this project ( from present till the end of the year 2070).

b) Find the Present Worth of this project.

c) Find is the Future Worth of this project (Hint: make use of the PW calculated in b).

John's project has a five-year term, a first cost, no salvage value, and annual savings of $20000. After doing present worth and annual worth calculations with a 17% interest rate, John noticed that the calculated present worth for the project is exactly three times the annual worth. What is the project's first cost?

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in