Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / Question1: A software company that installs systems for inventory control using RFID technology spent $500,000 per year for the past 5 years in developing its latest product
Question1: A software company that installs systems for inventory control using RFID technology spent $500,000 per year for the past 5 years in developing its latest product. The company wants to recover its investment in 4 years beginning 2 years from now. If the company signed a contract that will pay $250,000, 2 years from now and amounts increasing by a uniform amount each year through year 6, how much must the increase be each year, if the company uses an interest rate of 11% per year? · Draw the cash flow diagram: Question2: An environmental testing company needs to purchase $40,000 worth of equipment 2 years from now. At an interest rate of 18% per year compounded semiannually. Find the present worth of the amount expected to be paid using the two methods (the Nominal interest rate, and the effective interest rate). • Nominal interest rate: - Effective interest rate:
Already member? Sign In
