There are plans for Nestle company to expand and add a new product to the market available in 6 years. Nestle CFO Ruben Estrada wants to have $500,000 available before he announces the product. If the CFO sets aside $75,000 now and $100,000 in year 2, what uniform annual amount will it have to put in an account in years 3 through 6 to have the $500,000? Assume the account earns interest at 10% per year. bdurae
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- You plan to make a lump-sum deposit of $5000 now into an investment account that pays 6% per year, and you plan to withdraw an equal end-of-year amount of $1000 for 5 years, starting next year. At the end of the sixth year, you plan to close your account by withdrawing the re- maining money. Define the engineering economy symbols involved.Callis Construction LLC is planning to expand its site planning division 4 years from now. In order to expand, the CFO of the company has determined that $400,000 will be required. Eighth National Bank has agreed to pay 8% simple interest for the first 2 years the money is on deposit with the terms changing to a 6% nominal rate compounded monthly for the last 2 years. How much should Callis deposit today in order to have the needed $400,000?A discount furniture store is planning an expansion which will cost 12, 000, 000 three years from now. If the company plans to set aside money a the end of each year for the next 3 years, how much must it set aside in year 1 if each of the next two deposits will be twice as large as that one Assume the deposits will earn interest at 10% per year
- A company will need $65,000 in 6 years for a new addition. To meet this goal, the company deposits money in an account today that pays 8% annual interest compounded quarterly. Find the amount that should be invested to total $65,000 in 6 years. The company should invest $ (Do not round until the final answer. Then round to the nearest dollar as needed.)How many years will it take Rexchem, Inc. to accumulate $400,000 for a chemical feeder if the company deposits $50,000 each year, starting one year from now, into an account that earns interest at 12% 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.
- Robinson Co. is interested in purchasing a new delivery vehicle so it can become a subcontractor with Amazon Logistics. The vehicle would cost $175,000 and generate delivery revenue of $35,000 for each of the next 6 years. If Robinson Co. purchases the vehicle, it will take a loan for $140,000. The terms of the loan stipulate that 3% annual interest would be charged and that the loan would be repaid in 6 equal end of year payments. At the end of the 6 years, the vehicle will have a salvage value of $10,000. The tax rate is 40%. Assuming that the vehicle is depreciated using MACRS (5-year property class) and that Robinson Co. uses an after-tax MARR of 9%, compute the PW and determine whether Robinson Co. should purchase the new business vehicle. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental…6. Holcim Cement plans to buy equipment that costs $560,000 to expand its production in 6 years. If the company sets aside $65,000 now and $100,000 in year 3, what uniform annual amount will it have to put in an account in years 4 through 6 to have the $560,000? Assume the account earns interest at 9% per year, compounded semiannually.A company is considering getting involved in electronic commerce. A modest e-commerce package is available for $24,000. If the company wants to recover cost in 2 years, what is the equivalent amount of new income that must be received every 6 months if the interest rate is 8% per quarter? Round your answer to 2 decimal places.
- A software company that installs systems for inventory control using RFID technology spent $600,000 per year for the past 3 years in developing their latest product. The company wants to recover its investment in 5 years beginning now. If the company signed a contract that will pay $250,000 now and amounts increasing by a uniform amount each year through year 5, how much must the increase be each year? Use an interest rate of 15% per year.If a company will pay $75,000 for a truck that will increase deliveries to be made which will give an additional $10,000 in revenue each year for 10 years, should the company buy it? Interest rates are 4%. Show your mathComplete 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…