Metso Automation, which manufactures addressable quarter-turn electric actuators, is planning to set aside $100,000 now and $150 000 ane year from now for the replacement of the heating and cooling systems after four years from now. At an interest rate of 6.5% per year, determine how much will the company have in the account for the replacement job (end of year 4)?
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- CAGELCO is considering the purchase of a new turbo generator set that will last 5 years with a cost of P 500, 000. Maintenancewill cost P 6,000 for the first year, decreasing by P 1, 000each year to P2,000 the 5thyear. If the interest rate is 8% per year, compounded annually, how much money should the company set aside for this machine? show your solution1. An environmental testing company needs to purchase equipment 2 years from nowand expects to pay $50,000 at that time. At a real interest rate of 10% per year andinflation rate of 4% per year, what is the present worth of the cost of the equipment?Rizzo Excavating Inc. is purchasing a bulldozer. The equipment has a price of $100,000. The manufacturer has offered a payment plan that would allow Rizzo to make 10 equal annual payments of $16,274.53, with the first payment due one year after the purchase. Instructions a. How much total interest will Rizzo pay on this payment plan? b. Rizzo could borrow $100,000 from its bank to finance the purchase at an annual rate of 9%. Should Rizzo borrow from the bank or use the manufacturer’s payment plan to pay for the equipment?
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- I have purchased a machine worth P1,564,748.00. And it needs maintenance at the end of every 6 months starting 5 years after its purchased date and maintenance will be needed for the next 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money should be prepare today to finance the requirement if the interest rate is 0.10 compounded quarterly? Help me pls. Ill upvote :)I have purchased a machine worth P1,622,721.00. And it needs maintenance at the end of every 6 months starting 5 years after its purchased date and maintenance will be needed for the next 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money shoukd be prepare today to finance the requirement if the interest rate is 0,10 compounded quarterly?I have purchased a machine worth P1,665,509.00. And it needs maintenance at the end of every 6 months starting 5 years after its purchased date and maintenance will be needed for the next 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money should be prepare today to finance the requirement if the interest rate is 0.10 compounded quarterly?