1. A machine costs $980,000 to purchase and will provide $200,000 a year in benefits. The company plans to use the machine for 13 years and then will sell the machine for scrap, receiving $20,000. The company's MARR is 12%. Should the machine be purchased? Use conversion factor notation and show cash flow diagram.

It’s time to get a new laptop that is $2500. If you finance it, you will be charged 8% annual interest and it will take you two years to pay it off, paying each month.  (A)How much will you pay each month for this laptop?  (B)What are your total acquisition costs of financing the laptop?

A bank account pays 3% interest with monthly compounding. A series of deposits started with a deposit of $5000 on January 1, 2007. Deposits in the series were to occur each 6 months. Each deposit in the series is for $150 less than the one before it. The last deposit in the series will be due on July 1, 2021. What is the future worth of the account on July 1, 2024, if the balance was zero before the first deposit and no withdrawals are made?

You owe P30,000 due at the end of 3 years without interest. After 2 years, you want to pay the loan, how much should your creditor be willing to accept at the least? Money is worth 8%. 5.