You are the finance manager for a particular company. The company plans to purchase $2,000,000 in new assembly line machinery in 5 years. (Use Table 11-1 and Table 11-2. Round your answers to the nearest cent.) (a) How much (in $) must be set aside now at 6% interest compounded semiannually to accumulate the $2,000,000 in 5 years? $ 1488187.83 (b) If the inflation rate on this type of equipment is 7% per year, what will be the cost (in $) of the equipment in 5 years, adjusted for inflation? $ 2805103.46 (c) Use the inflation-adjusted cost of the equipment to calculate how much (in $) must be set aside now. $ (d) Use the present value formula to calculate how much (in $) would be required now if you found a bank that offered 6% interest compounded daily to obtain the value found in part b. (Ignore leap years in calculation.) $ 2078122.99

A company has had record profits and decided to use some of the profits to pay for manufacturing improvements. If the company can invest $1,600,000.00 in an a annuity will that will make payments at the beginning of every six months for 4 years. If the annuity pays 5.6%, compounded semi-annual. What is the size of payments that the company can expect?The payment amount will be $. (Round to 2 decimal places.)

Apple has purchased land for $500,000 for their new factory. They make a down payment of $100,000, and the remainder is financed at (15) percent compounded semi-annually with semi-annual payments over 4 years. Develop an Excel® table to illustrate the payment amounts and schedule for the loan, assuming payback follows  a) Plan 1: Pay the accumulated interest at the end of each interest period and repay the principal at the end of the loan period.  b) Plan 2: Make equal principal payments, plus interest on the unpaid balance at the end of the period.  c) Plan 3: Make equal end-of-period payments.  d) Plan 4: Make a single payment of principal and interest at the end of the loan period.  e) A different plan: Pay off the principal in such a way that it is X, 1.5X, 2X, 2.5X... till the end of the last payment period. In addition, pay the accumulated interest at the end of each interest period.

A company vehicle is being purchased for $55,000 and the business will put $5,000 down.If the company takes out a 5-year loan at 4%, what will the monthly principal and interestpayment be? Create an amortization schedule. All calculated in excel?

A firm needs to replace most of its machinery in 4 years at a cost of $590,000. The company wishes to create a sinking fund to have this money available in 4 years. How much should the monthly deposits be if the fund earns 5% compounded monthly?