Value design

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I need someone to solve this problem now, 

 

1-Costs for maintenance of buildings at an industrial complex are expected to be $5,000 in year three,  $4,800 in year four and amounts decreasing by $200 per year thereafter through year nine. At an interest rate of 10% per year, find the present worth of the expenditures using arithmetic gradient formulas. 

 

 

2. The costs of fuel for a smelting operation are expected to be $50,000 in year three, and  decreasing by 5% per year thereafter through year ten. At an interest rate of 8% per year, find the equivalent annual cost between years 3 through 10

  

 

 

3. Payments of $1,000 in year two and $4,000 in year five are equivalent to uniform payments in years three through seven at an interest rate of 10% per year. Find the amount of those payments 

 

 

4. The bond has been purchased for 15,000 dollars.  It is a 25-year bond with a $20,000 face value and 8% coupon rate (with interest paid semiannually)? The bond will be kept to maturity. The effective interest rate for MARR rate is 10% per year compounded annually. Should the investor buy the bond. Why? 

 

 Problems 5 is based on the following statement: 

 

The data for new and used machines are shown below:

 

Used machine

New machine

Initial cost($)

15,000

40,000

Annual operating cost ($/year)

8,000

2,000

Salvage value ($)

5,000

10,000

Life (years)

4

6

 

Use an interest rate of 10% per year. 

 

 

 

5. To compare the machines on the basis of a present worth analysis, calculate the present worth of the both of machines. Which machine you will pick? Why? 

 

6. the $10.000 investment right now will lead to rate of return (i.e, you might consider as an interest rate) 7% between years 0-3, 8% between years 3-7, and 10% between years 7-10. Calculate the future worth of the investment at the end of year 10.

    • 9 years ago
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