Cooling Tools, Inc. is currently producing 1,228 of small refrigerators per month but the company's CEO plans to increase production at a rate of 7.83 percent per month until the firm is producing 5,407 of refrigerators per month. How many months will this take? Round the answer to two decimal places. Your Answer: Answer
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- You own a small machine shop. You would like to save $340, 000 to buy new equipment six years from now. The plan is to set aside an equal amount of money each quarter (every three months). How much should the firm save each quarter to achieve this goal if you can earn a 5.8% return? A. $10, 765.26 B. $8,396.17 C. $11, 945.79 D. $10,768.26 E $11,495.79An office building is currently for sale, and you are thinking of purchasing it. From your extensive market research and knowledge, you know the net operating income for this year is $315,000. You expect the net operating income will grow by 7% in the first five years, 5% in the subsequent five years, and 3.5% for every year after. If you are considering an 18-year investment window and desire a 16% rate of return, how much should you pay for the building?Complete the problems below. 1. A company will need $40,000 in four years for a new addition. To meet the goal, the company will deposit money into an account paying 6% annual interest, compounded monthly. How much should the company deposit each month in order to be able to pay for the addition? Looking at a couple of scenarios to compare to the initial investment (above): a. Exactly 20 months after the company begins their investment (above), they receive a payment from a settled lawsuit of $2000 that they immediately deposit into the account. If they continue, uninterrupted, with their monthly deposits, will the company be able to afford to add a skylight to the addition if the change order (the amount added to the original cost of $40,000) is $3000? If yes, how much, if any would be left over? If no, how much more money will they need? b. Suppose that instead of depositing the money monthly for five years, they decide to finance the addition (the original $40,000) for four years at…
- Please use excel file to work out the time value examples in the slides for chapter 4 and upload your excel file here. Please use all the cell reference and time value functions to do all the calculations inside the excel. Please lay out your input information separately and label it clearly. 1. Suppose your company expects to increase unit sales of widgets by 15% per year for the next 5 years. If you currently sell 3 million widgets in one year, how many widgets do you expect to sell during the fifth year? 2. You want to begin saving for your daughter's college education and you estimate that she will need $150,000 in 17 years. If you feel confident that you can earn 8% per year, how much do you need to invest today? 3. Suppose you have a 1-year old son and you want to provide $75,000 in 17 years toward his college education. You currently have $5,000 to invest. What interest rate must you earn to have the $75,000 when you need it?Use Table 11-2 to solve the problem. The requirement for computer server capacity at a particular company is expected to increase at a rate of 15% per year for the next 5 years. If the server capacity is expected to be 1,300 gigabytes in 5 years, how many gigabytes of capacity are there today? Round to the nearest whole gigabyte. GB Need Help? Read It 5:05 PMMetalfab Pump and Filter expects the cost of steel bodies for 6-inch valves to increase by $3.75 every 3 months. If the cost for the first quarter is expected to be $80, what is the present worth of the costs for a 3-year time period at an MARR of 12% per year compounded quarterly? The present worth is $
- The manager of a large apartment complex knows from experience that 110 units will be occupied if the rent is 360 dollars per month. A market survey suggests that, on the average, one additional unit will remain vacant for each 10 dollar increase in rent. Similarly, one additional unit will be occupied for each 10 dollar decrease in rent. (a) If æ is the number of units rented, and p is the rent per unit in dollars, what is the price-demand equation (assuming it is linear)? p = (b) What is the monthly revenue function for the manager? (Hint: Revenue is the product of the price per item and the number of items.) R(x) = (c) How many apartment units should be rented to maximize the monthly revenue? apartment unitsLoadstar Sensors is a company that makes load/force sensors based on capacitive sensing technology. The company wants to accumulate $30 million for plant expansion five years from now. If the company already has $15 million in an investment account for the expansion, how much more must the company add to the account now so that it will have the $30 million 5 years from now? The account earns interest at 10% per year. Solve using (a) tabulated factors, and (b) a spreadsheet. Compare the answers.Metalfab Pump and Filter, Inc. estimates that the cost of steel bodies for pressure valves will increase by $2 every 3 months. If the cost for the first quarter is expected to be $80, what is the present worth of the costs for a 3-year time period at an interest rate of 3% per quarter?
- HS Shipping wants to expand as soon as it can save $112 million. Towards that goal, the firm started saving three years ago and currently has $38.2 million saved. Starting today, the firm will add $15,000 a month to this savings account. The rate of return is 7.1 percent, compounded monthly. How long will it be from now before the company can expand?Engineering Economy Question is image For the end of this year, yearly labor cost of a company is estimated as $35000 and it will increase $4500 per year afterward. To afford labor cost for the next 9 years, how much should the company approximately invest in a bank now when i=20% per year?The revenue from a manufacturing process (in millions of dollars per year) is projected to follow the model R=130 for 10 years. Over the same period of time, the cost (in millions of dollars per year) is projected to follow the model C-50+ 0.22, where t is the time (in years). Approximate the profit over the 10-year period. (Round your answer to two decimal places.) $ million Need Help? P