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Author Question: Concose Park Department is considering a new capital investment. The cost of the machine is ... (Read 34 times)

abc

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Question 1

Assume your goal in life is to retire with three million dollars. How much would you need to save at the end of each year if interest rates average 5% and you have a 10-year work life?
◦ $15,000
◦ $1,841,740
◦ $238,512
◦ $600,000

Question 2

Concose Park Department is considering a new capital investment. The cost of the machine is $280,000. The annual cost savings if the new machine is acquired will be $165,000. The machine will have a 3-year life and the terminal disposal value is expected to be $35,000. There are no tax consequences related to this decision. If Concose Park Department has a required rate of return of 14%, which of the following is closest to the present value of the project?
◦ $190,880
◦ $87,750
◦ $126,755
◦ $103,130


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Marked as best answer by abc on Mar 6, 2021

perkiness

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abc

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)


LVPMS

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Reply 3 on: Yesterday
Excellent

 

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