Northwest Iron and Steel is considering getting involved in electronic commerce. A modest e-commerce package is available for $30,000. The company wants to recover the cost in 2 years. Find the equivalent amount of new revenue that must be realized every 6 months at an interest rate of 3% per quarter using a factor formula, and a single-cell spreadsheet function that includes an EFFECT function. Round your answer to the nearest whole dollar.

Northwest Iron and Steel is considering getting involved in electronic commerce. A modest e-commerce package is available for $30,000. The company wants to recover the cost in 2 years. Find the equivalent amount of new revenue that must be realized every 6 months at an interest rate of 3% per quarter using a factor formula, and a single-cell spreadsheet function that includes an EFFECT function. Round your answer to the nearest whole dollar.

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8EB: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an...

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Bethany Iron and Steel is evaluating possible economic advantages of being involved in electronic commerce. A modest e-commerce package is available for $30,000. If the company wants to recover the cost in 2 years, what is the equivalent amount of new income that must be realized every 6 months at an interest rate of 12% per year compounded quarterly? Solve using two of the following three approaches: factor formula, calculator, and spreadsheet.