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- You bought the latest IPhone 13 for your online business for 94 000. With this your online income has increased by 1000 annually. After 7 years your iPhone 13 can be sold at 14 000. You have set your MARR to be 8%. What value should the phone be bought so that you would have a breakeven?You want to save up enough money to purchase a new computer, which costs $4,500. You currently have $4,000 in your bank account. If you can earn 8% per year by investing this money, how long will it take before you have enough money in your bank account to buy the new computer? _______years (keep at least two decimal places)1. You bought an investment for $15,000 in 2000 and sold it for $26,000 in 2014. What was the annual price appreciation of this investment? 2. You want to buy a new car. You are able to save $5,000 per year in an investment account, and your account is growing at 8% annually. How long will it take you to accumulate $30,000 to make this purchase?
- A software entrepreneur has been offered $10,000 per year for the next five years and then $20,000 per year for the following 10 years for the rights to his new smart phone app. If the interest rate is 4% nominal annual, compounded monthly, how much is this worth today?You recently got promoted at your job. You have since decided to buy your dream car and expect that it will cost you $94,000 seven years from today. After budgeting your expenses, you decide that you can save $9,000 per year at the beginning of each year. Given a market interest rate of 13%, will you be able to purchase your car at the end of year 7? Would you be able to afford it one year later? (Using financial calculator)Today, your dream car costs $67,700. You feel that the price of the car will increase at an annual rate of 2.6 percent. If you plan to wait 6 years to buy the car, how much will it cost at that time.
- The price of a car you want is $42,000 today. Its price is expected to increase by $1000 each year. You now have $25,000 in an investment account, which is earning 10% per year. How many years will it be before you have enough to buy the car without borrowing any money? Solve by (a) trial and error, and (b) by spreadsheet.It’s time to get a new laptop that is $2500. If you save up for it each month it will take one year in an account that earns 5% annual interest. (A)How much would you have to put aside each month to have enough for it? (B)What are the total acquisition costs of saving up for the laptop?You need $32,000 at the end of 10 years. If you can earn 0.625% per month, how much would you need to invest today to meet your objective? Screen reader support enabled.
- (a) What is the approximate number of years you would have to sell a mobile phone app to break even if income is estimated to be $50,000 per year, expense is $15,000 per year, your initial investment is $280,000, and your MARR is 10% per year? (b) Find the exact payback period using a spreadsheet function.Jose is thinking about purchasing a soft drink machine and placing it in a business office. He knows that there is a 5% probability that someone who walks by the machine will make a purchase from the machine, and he knows that the profit on each soft drink sold is $0.10. If Jose expeccts a thousand people per day to pass by the machine and requires a complete return of his investment in one year, then what is the maximum price that he should be willing to pay for the soft drink machine? Assume 250 working daysin a year, and ignore taxes and the time value of money.You are considering whether or not to purchase another new air conditioner refrigerant recovery machine that costs RM13600.00 per piece. He knows that his total earnings for the past three years (sales for air conditioning service) have averaged RM33600.00 per year for 5 working days a week and have remained steady. You are sure that you will be able to sell another 200 air conditioning service per year for RM80.00 labor a piece as a result of having this new capability. You decided: i. Calculate and explain what would your shop ROI be over three years by taking this opportunity based on the information. ii. Calculate the ROI percentage (%) for the new machine's sales.
