How much money should you be willing to pay now for a guaranteed 6,000 pesos per year for 9 years starting next year, at a rate of return of 16% per year?

am. 112.

Hi, what is the answer and how you got it? A recently hired chief executive officer wants to reduce future production costs to improve the company’s earnings, thereby increasing the value of the company’s stock. The plan is to invest $82,000 now and $52,000 in each of the next 4 years to improve productivity. By how much must annual costs decrease in years 5 through 15 to recover the investment plus a return of 12% per year? The annual cost decreases by $?

1. John Doe Co., a company that makes tractors, budgeted $75,000 per year to pay for certain components over the next 6 years. If the company expects to spend $16,000 in year 1, how much of a uniform (arithmetic) increase each year is the company expecting in the cost of this part? Assume the company uses an interest rate of 10 % per year.