TING (ACC 291/ 292) D9-9 a new 4 years, with no salvage value at the end of that

Question

TING (ACC 291/ 292) D9-9 a new 4 years, with no salvage value at the end of that period. (a) If Larry's required rate of return is 10%, what level of annual cash savings must the lawnmower method? (For calculation purposes, use 4 decimal places as displayed in the lactor tableprovided and nond final answer to Ode inul place, e 58.97.) (b) If Larry's required rate of return is 20%, what level of annual cash savings must the as displayed in the factor table provided and round final answer to o method? (For calculation purposes, use 4 decímal places Annual cash savings should be g LINK TO TEXT Oo

Explanation / Answer

a) annual cash saving for 5 years on 8276 would be

8276*10% = 827.6 this would added to prinicipal and further would be added for every year till the next 5 years

so the answer would be 9103.6

so the annual cash savings would be 827.6

b) in case of 20% then 8276*20% = 1655.2

a) the irr would be around 16%

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