Income from sales of an injection cleaning gasoline additive has been averaging $170,000 per year for five years. At an interest rate of 10% per year, the future worth of the income at the end of year 5 is closest to:
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- Income from sales of an injector-cleaning gasoline additive has been averaging $100,000 per year. At an interest rate of 18% per year, the future worth of the income in years 1–5 is closest to:a. $496,180b. $652,200c. $715,420d. $726,530Income from sales of certain hardened steel connectors was P400,000 in the first quarter, P410,000 in the second, and amounts increasing by 10,000 per quarter through year 4. What is the equivalent uniform amount per quarter if the interest rate is 12% per year compounded quarterly? Please show the solution. Solutions in excel are acceptable.Net revenues at an older manufacturing plant will be $2 million for this year. The net revenue will decrease 15% per year for 5 years, when the assembly plant will be closed (at the end of Year 6). If the firm’s interest rate is 10%, calculate the PW of the revenue stream.
- NMTeX Oil owns several gas wells in Carlsbad, NM. Revenue from the wells has been increasing according to an arithmetic gradient for the past 5 years. The revenue in year 1 from well no. 24 was $390,000 and it increased by $15,000 each year thereafter. Determine (a) the revenue in year 3, and (b) the equivalent annual worth of the revenue through year 5. Assume an interest rate of 10% per year.Investment in a crane is expected to produce profit from its rental of $15,000 during the first year of service. The profit is expected to decrease by $2500 each year thereafter. At 12% interest, find the present worth of the profits.An initial investment of $50,000 in Blossom’s Bunks is expected to pay off greatly—but not equally—in each of the next 5 years. The company expects a small increase in operating income in year 1 of $5,000, but then steadily larger improvements in profitability in years 2–5: $9,125, $20,500, $21,125, and $25,375, respectively. The year prior to this investment, the company’s ARR was 9%, and its tax rate was 20%.What level of ARR does this projection provide? (Round answer to 2 decimal places, e.g. 15.25%.) ARR enter the accounting rate of return in percentages rounded to 2 decimal places % Is it likely that the company will move forward with this investment?select an option
- A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two, and amounts increasing by $500 per year through year 10. At an interest rate of 10% per year, the present worth of the maintenance cost is nearest to A.$51,790 B.$42,170 C.$46,660 D.$38,220An industrial laser can be purchased and installed for $90,000$. Assume that the GDS recovery rate is given for the 7-year period. We expect that the laser stays in service for eight years, and we gain $10,000$ from the disposal of it at the end of year eight. The $11,038$ net annual value that can be attributed to this laser is constant over all the eight years. Assume that the effective income tax rate is $0.25$ and the after-tax MARR equals $15%$ per year. What is the ATCF at the end of year six? Consider the depreciation deduction based on the 7-year period GDS recovery rate.Maintenance costs for a regenerative thermal oxidizer increased according to an arithmetic gradient for 5 years. The cost in year 1 was $7000. If the interest rate is 10% per year and the present worth of the costs for a 5-year period was $28,800, the amount of the yearly increase, G, was closest to: (a) $1670 (b) $945 (c) $620 (d) $330
- Swampy Ox Real Estate (SORE) has been growing at a constant 7 percent rate for many years, and it expects to continue this growth long into the future. On January 1 of this year, which is the slow part of its selling season, SORE's total assets were $420 million. At the height of its selling season, which is at the end of June, SORE expects total assets to be $520 million. How much of the $520 million in assets represents permanent assets, and how much represents temporary current assets? Round your answer to the nearest dollar. Permanent assets: $ Temporary current assets: $During a 12-month period, gas prices increased from $3.399 per gallon to $4.659. What is the percent increase, to the nearest tenth of a percent?Border Steel invested $800,000 in a new shearing unit. At an interest rate of 12% per year compounded quarterly, the quarterly income required to recover the investment in 3 years is closest to:a. $69,610b. $75,880c. $80,370d. $83,550
