Please do all 3 and include all calculations and cashflow diagrams. HAND WRITTEN WORK ONLY. DO NOT USE EXCEL!!!! Thank y
Posted: Sun Jun 05, 2022 5:15 pm
Please do all 3 and include all calculations and cashflow
diagrams. HAND WRITTEN WORK ONLY. DO NOT USE EXCEL!!!! Thank
you
Question 2 (4 points): The chemical plant is planning to purchase in 6 years a $250K piece of equipment which will increase production. The plant currently has $25K for this project in the investment account. The plan is to deposit $30K in years 1 and 2 and grows this deposit by $2K each year from year 3 through year 6. (a) Determine the future worth of the investment account with interest rate of 4%. (b) Does the chemical plant have enough funds to purchase the equipment at year 7?
Question 5 (2 points): With an interest rate of 1.5%, compounded quarterly, if you deposit $2,500 every semi-annual, how much will you have in 4 years? Question 6 (4 points) Income from the recycling paper and cardboard at Hamden recycling center has averaged $9,000 per quarter for 5 years. What is the future worth of the income at year 5 at an interest rate of 4%, compounded semiannually? a) Assume that interperiod cash flows earn prorated compound interest. b) Assume there is no interperiod compounding.
diagrams. HAND WRITTEN WORK ONLY. DO NOT USE EXCEL!!!! Thank
you
Question 2 (4 points): The chemical plant is planning to purchase in 6 years a $250K piece of equipment which will increase production. The plant currently has $25K for this project in the investment account. The plan is to deposit $30K in years 1 and 2 and grows this deposit by $2K each year from year 3 through year 6. (a) Determine the future worth of the investment account with interest rate of 4%. (b) Does the chemical plant have enough funds to purchase the equipment at year 7?
Question 5 (2 points): With an interest rate of 1.5%, compounded quarterly, if you deposit $2,500 every semi-annual, how much will you have in 4 years? Question 6 (4 points) Income from the recycling paper and cardboard at Hamden recycling center has averaged $9,000 per quarter for 5 years. What is the future worth of the income at year 5 at an interest rate of 4%, compounded semiannually? a) Assume that interperiod cash flows earn prorated compound interest. b) Assume there is no interperiod compounding.