HWK4-Allec

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California Baptist University *

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324

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Economics

Date

Feb 20, 2024

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docx

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Timothy Allec Homework Chapter 4 Economics with Dr. O • 4- 16 a) C = 200/1.1 + 200/1.1^2 + 200/1.1^3 + 200/1.1^4 =$633.97 b) V = 10*1.1^4 + 10*1.1^3+ 10*1.1^2+ 10*1.1^1 = $51.05 c)B =100/1.1 + 100/1.1^3 + 100/1.1^5 =$228.13 • 4- 20 To calculate the final single payment for a machine purchased by a company, I did these steps 1) Determine the monthly payment for the machine based on the given interest rate, initial deposit, and number of payments. 2) Multiply the monthly payment by 12 to obtain the annual payment amount. 3) Since you want to find the single payment after 2 years, calculate the payments for both year 1 and year 2. Let's assume these payments are $8,358 each for a total of $16,716 over the two years. To find the final single payment, subtract the total payments made in the first two years from the original cost of the machine, which is $17,000. So, the final single payment would be $17,000 - $16,716 = $284. • 4- 52
a. S = 600 * (P/G, 8%, 4) = 600 * 4.650093 S = 2790.06 b. T = 200 * (A/G, 8%, 5) = 200 * 1.846472 T = 369.29 c. X = 150 *(P/G, 8%, 5) *(F/P, 8%,1) = 150 * 7.372426 * 1.08 X = 1194.33 • 4- 53 Using excel formula =NPV(rate, value(1),…value(n) I obtained the following values for: a) $505.69 b)$5,131.48 c) $3,980.11 • 4- 83 NPV of the Robot purchase=$178,612, purchase of the robot is recommended
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