(Ignore income taxes in this problem. ) How much would you have to invest today
ID: 2345098 • Letter: #
Question
(Ignore income taxes in this problem. ) How much would you have to invest today in the bank at an interest rate of 8% to have an annuity of $4,800 per year for 7 years, with nothing left in the bank at the end of the 7 years? Select the amount below that is closest to your answer. $33,600 $31,111 $24,989 $2,798 (Ignore income taxes in this problem. ) Morrel University has a small shuttle bus that is in poor mechanical condition. The bus con be either over hauled now or replaced with o new shuttle bus. The following data have been gathered concerning these two alternatives: The University could continue to use the present bus for the next seven years. Whether the present bus is used or a new bus is purchased, the bus would be traded in for another bus at the end of seven years. The University uses a discount rate of 12% and the total cost approach to net present value analysis in evaluating its investment decisions. If the present bus is repaired, the present value of the annual cash operating costs associated with this alternative is (rounded off to the nearest hundred dollars): $(54,800) $(30,500) $(47,200) $(16,200)Explanation / Answer
B B
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.