(2.5 points) What is the future worth (in Year 10) of $23,000 deposited at the e

ID: 2587538 • Letter: #

Question

(2.5 points) What is the future worth (in Year 10) of $23,000 deposited at the end of Year 3 plus $28,000 deposited at the end of Year 5, and $20,000 deposited at the end of Year 8 at an interest rate of 6% per year? 3. 4. (2.5 points) An electronics firm invested $60,000 in a precision inspection device. It cost $4000 to operate and maintain in the first year and $3000 in each of the subsequent years At the end of 4 years, the firm changed their inspection procedure, eliminating the need for the device. The purchasing agent was very fortunate in being able to sell the inspection device for $60,000, the original price. The plant manager asks you to compute the equivalent uniform annual cost of the device during the 4 years it was used. Assume interest at 5% per year.

Explanation / Answer

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Amount

Year (Till 10)

FV factor @ 6% pa,

23000

1.59385

36658.5

28000

1.41852

39718.5

20000

1.191016

23820.3

Total

100197.4

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