a. a. Mr. Mwansa decided to use part of his retirement package to invest in heavy duty equipment for solar power project. Based on the data given in Table 1, calculate the payback period using the discount rate of 12%. What advice would you give to Mr. Zulu if he intends to purchase similar equipment using a bank loan with a maximum repayment period of 36 months? Table 1: Details of the costs Details Cost of Purchase of equipment Cost of fuel and maintenance Income earned from hiring out the equipment 2019 470,000 2020 2021 15,500 2022 15,500 17,000 18,000 160,960 190,000 210,000 220,000 2023 2024 20,000 2025 22,000 240,000 260,000 2026 25,000 20 280,000

Deciding between traditional and Roth IRAs. Elijah James is in his early 30s and is thinking about opening an IRA. He can’t decide whether to open a traditional/deductible IRA or a Roth IRA, so he turns to you for help.   To support your explanation, you decide to run some comparative numbers on the two types of accounts; for starters, use a 25-year period to show Elijah what contributions of $5,500 per year will amount to (after 25 years) if he can earn, say, 10 percent on his money. Will the type of account he opens have any impact on this amount? Explain.   Assuming that Elijah is in the 22 percent tax bracket (and will remain there for the next 25 years), determine the annual and total (over 25 years) tax savings he’ll enjoy from the $5,500-a-year contributions to his IRA. Contrast the (annual and total) tax savings he’d generate from a traditional IRA with those from a Roth IRA. Now, fast-forward 25 years. Given the size of Elijah’s account in 25 years (as computed in part a),…

Not sure what the table factor would be

Owners of a new restaurant have found numerous costs associated with starting their business (see table). They financed the total of these costs with end-of-month payments through a loan from the bank at {E}compounded {F}, amortized over {G} years. 1. What is the size of the monthly payments required to settle this loan? 2. What is the principal balance outstanding on the loan after one year? 3. What is the size of the final payment? 4. Construct a partial amortization schedule for this loan.