Answer: 1,321406.181 A company plans to modernize its facilities in 10 years. They estimate...
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Answer: 1,321406.181
A company plans to modernize its facilities in 10 years. They estimate saving $9,110 per month if they sell some of their machines now, and salvage them for $45,037. They also think 2 years from now their current $3,862 per month O & M costs will increase by 1.15% per month until they sell the rest of the machines to modernize. How much capital will they have available to modernize if they place all the savings into an account that pays them a nominal 23.04% rate, compounded 5 periods per year? A company plans to modernize its facilities in 10 years. They estimate saving $9,110 per month if they sell some of their machines now, and salvage them for $45,037. They also think 2 years from now their current $3,862 per month O & M costs will increase by 1.15% per month until they sell the rest of the machines to modernize. How much capital will they have available to modernize if they place all the savings into an account that pays them a nominal 23.04% rate, compounded 5 periods per year
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Answer: 1,321406.181