A pulp and paper company is planning to set aside $150,000 now for possibly replacing its large synchronous refiner motors. If the replacement isn’t needed for 8 years, how much will the company have in the account if it earns interest at a rate of 8% per year?
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A pulp and paper company is planning to set aside $150,000 now for possibly replacing its large synchronous refiner motors. If the replacement isn’t needed for 8 years, how much will the company have in the account if it earns interest at a rate of 8% per year?
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- A pulp and paper company is planning to set aside $150,000 now for possibly replacing its large synchronous refiner motors. If the replacement isn’t needed for 5 years, how much will the company have in the account provided it earns a market rate of 10% per year and the inflation rate is 4% per year?A company is thinking about buying new tools. The tools has an estimated fixing life of five years. The annual upkeep cost for the tools will be $2 million. The company would like to make an extra annual revenue of $6 million per year. At an interest rate of 7% per year what is the most amount that the company should pay on the tools?A pulp and paper company is planning to set aside Php750,000 now for possibly replacing its large synchronous refiner motors. If the replacement is not needed for 5 years, how much will the company have in the account if itearns the market interest rate of 10% per year and the inflation rate is 4% per year?
- Castillo’s Warehouse will need to purchase a new forklift for its warehouse operations three years from now, when its new warehouse facility becomes operational. If the price of the new forklift is $38,000 and Castillo's can invest its money at 7.25% compounded monthly, how much should it put aside today to achieve its goal?The Wildwood Widget Company needs a milling machine for its new assembly line. The machine presently costs $85,000, but has a cost inflation rate of 2%. Widget will not need to purchase the machine for 3 years. If general inflation is expected to be 4% per year during those 3 years, determine the price of the machine. What is the present worth of the machinery if the market rate of interest for Widget is 25%?The ABD Company is building a new plant, whose equipment maintenance costs are expected to be 25,000 the first year, 7,500 the second year, 10,000 the third year, 12,500 the fourth year, etc., increasing by 2,500 per year through the 10th year. The plant is expected to have a 10-year life. Assuming the interest rate is 8%, compounded annually, how much should the company plan to set aside now in order to pay for the maintenance? Draw cash flow diagram
- A seaI firm Trodent’s customers expects to decrease downtime by 0.3 as a result of the new seal design. If Iost production would have cost the company $110,000 per year for the next four years, how much could the company afford to spend now on the new seals, if it uses an interest rate of 0,1 2 per year?The Dallas Development Corporation is considering the purchase of an apartment project for $100,000. They estimate that they will receive $15,000 at the end of each year for the next 10 years. At the end of the 10th year, the apartment project will be worth nothing. If Dallas purchases the project, what will be its internal rate of return, compounded annually? If the company insists on an 8 percent return compounded annually on its investment, is this a good investment?A company is buying a machine. They can pay a $45,000 downpayment now, and pay %15,000 every month for the life of the machine (7 years), or they can pay teh full marks value of the machine now. If the salvage value is expected to be $250,000 and can borrow money at an interest rate of 9%, compounded monthly, what is the maximum amount that the company should pay for the machine today such that the chouices should be equivalent? a. 817,253 b. $853, 946 c. $840,551 d. $843,848 e. None of the above : List answer ______ Please use excel and show formulas.
- Thompson Mechanical Products is planning to set aside $150,000 now for possible replacement of large synchronous refiner motors when it becomes necessary. If the replacement isn’t needed for 5 years, how much will the company have in its investment set-aside account? Assume a rate of return of 18% per year.How many years will it take Rexchem, Inc., to accumulate $725,000 for a chemical feeder, if the company deposits $50, 000 each year, starting one year from now, into an account that earns interest at 10% per year? (Round up your answer to an integer value.) Rexchem, Inc., will take years.Skyline Industries will need $2.2 million in 4.5 years from now to replace some equipment. Currently, the firm has some extra cash and would like to establish a savings account for this purpose. The account pays 3.6 percent interest, compounded annually. How much money must the company deposit to fully fund the equipment purchase? Can the calculator and excel solution be provided?