company is considering buying a CNC machine. In today's dollars, it is estimated that the maintenance costs for the machine (paid at the end of each year) will be $29,000, $31,00 , respectively. The general inflation rate (7) is estimated to be 6% per year, and the company will receive 14% return (interest) per year on its invested funds during the inflationary maintenance expenses in equivalent equal payments (in actual dollars) at the end of each of the five years. Find the amount of the company's payments. he amount of the company's payments is $thousand. (Round to the nearest thousand.)

company is considering buying a CNC machine. In today's dollars, it is estimated that the maintenance costs for the machine (paid at the end of each year) will be $29,000, $31,00 , respectively. The general inflation rate (7) is estimated to be 6% per year, and the company will receive 14% return (interest) per year on its invested funds during the inflationary maintenance expenses in equivalent equal payments (in actual dollars) at the end of each of the five years. Find the amount of the company's payments. he amount of the company's payments is $thousand. (Round to the nearest thousand.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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