The maintenance cost of a car are is approximately $400 per year.With age the cost increase by $100 a year.What is the future worth of the maintenance cost in five year's time if the interest rate is 5% compounded annually?

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A: Introduction:- A new piece of equipment is projected to cost $10,000 per year in upkeep. Alternative…

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A: Interest Payment: It refers to the financial or monetary charge levied on the borrowed amount.

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A: Please see the next step for the solution

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A: Present Value = future value discounted at 7.25%

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A: The given answer is correct

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A: Given:

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A: present value is the value of future cashflow discounted to present day.

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Q: What is the annual operation and maintenance costs of owning this vehicle?

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: how much should it put aside today to achieve its goal?

A: Time value of money is one of the most fundamental and basic concepts of investing. The phrase “Time…

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A: Computation:

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A: Solution:- Depreciation is the wear and tear cost of using an asset.

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A: Here, Cost = $200,000 Salvage value = $15,000 Time period = 7 years Annual operating costs =…

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A:

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A: Information Provided: Present amount = $10,000 Term = 20 years Inflation rate = 3%

Q: rmed in the fifth year so tha

A: Alternative A is the name of the option.It is also feasible to do the maintenance yourself at a cost…

Q: An annual maintenance cost of a machine is 500 this year. It is expected to increase 50 pesos per…

A: The time value of money is the idea that the value of money received today will be more worthy than…

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A: Given is: Cost of Car = $45000 Per year depreciation = $5000

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A: The annual return seems to be the rate of return on investment over time, given as a time-weighted…

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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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A:

Q: An equipment is estimated to cost $300,000 four years from now and an additional $100,000 five years…

A: Introduction: Present value refers to the current valuation for a future sum. Investors determine…

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A: We will solve this by using compounding interest method , using following formula : Amount =…

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A: Calculate the present value for both machines as follows:

Q: will it cost at that time.

A: This problem involves the calculation of future value which is given by the following formula: FV =…

Q: You invest in a piece of equipment costing $30,000. The equipment will beused for two years, at the…

A: Calculation of the equivalent net savings per machine hour is shown:

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A: Future value of the invested amount or cost savings is the total of compounded amount of investments…

Q: The annual income from a rented house is $26,400. The annual expenses are $7200. If the house can be…

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A: In this problem we have to calculate present value of four and than present value of that today.

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A: EUAC is the equivalent annual cost of operating machinery it includes initial cost and an annual…