Question 1090016: Q1. You deposit $3,000 in a savings account that earn 9% simple interest per year. How many years will it take to double your balance? If instead you deposit the $3,000 in another savings account that earns 8% interest compounded yearly, how many years will it take to double your balance?
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Q2. What will be the amount accumulated by each of the following present investments?
(a) $5,000 in 31 years at 7% compounded annually,
(b) $20,000 in 7 years at 6% compounded annually.
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Q3. Assuming an interest rate of 8% compounded annually. Answer the following question;
(a) how much money can be loaded now if $6,000 is to be repaid at the end of five years?
(b) how much money will be required in four years in order to repay a $15,000 loan borrowed now?
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Q4. If $1,000 is invested now, $1,500 two years from now, and $2,000 four years from not at an interest rate 6% compounded annually, what will be the total amount in 10 years?
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Q5. Kevin Jones, Texas Tiger’s Quarterback, agreed to an eight-year, $50 million contract that at the time made him the highest paid player in professional football history. The contract included a signing bonus of $11 million and called for annual salaries of $2.5 million in 2003, $1.75 million in 2004, $4.15 million in 2005,$4.90 million in 2006, $5.25 million in 2007, $6.2 million in 2008, $6.75 million in 2009, $7.5 million in 2010. The $11 million signing bonus was prorated over the course of the contract so that an additional $1.375 million was paid each year over the eight-year contract period. With the salary paid at the beginning of each season, what is the worth of his contract at an interest rate of 6%?
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Q6. Consider the following four mutually exclusive investment projects. Assume that the MARR = 15%. Which project would be selected based on the NPW and EUAW criterions?
PROJECT CASH FLOW
n A B C D E
1 -1500 -1500 -1500 -1500 -1800
2 1350 1000 450 450 600
3 800 1000 450 450 600
4 200 1500 450 450 600
5 100 1500 450 450 600
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Q7. Five mutual exclusive investment alternatives have been proposed. Based on benefit/cost ratio analysis, and a MARR of 15%, which alternative should be selected
Year A B C D E
0 -$200 -$100 -$125 -$150 -$225
1-5 68 25 42 52 68
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Q8. Hambry Enterprise produces a component for recycling uranium used as a nuclear fuel in power plant generators in France and the United States. Use the following cost and revenue figures, quoted in U.S. dollars per hundred-weight (cwt), recorded for this year to calculate the answers for each plant.
Location Fixed Cost
$million Revenue, $ per cwt Cost, $ per cwt
France 3.50 8500 3900
US 2.65 12500 9900
a) Determine the breakeven point for each plant
b) Estimate the minimum revenue per hundredweight required for next year if breakeven values and variable costs remain constant but fixed costs increase by 10%.
c) During this year, the French plant sold 950 units in Europe, and the U.S. plant sold 580 units. Determine the year’s profit (loss) for each plant.
d) If Hambry’s president has a goal $1 million profit next year at each palnt with no revenue or fixed cost increase, determine the decreases in dollar amounts and percentages in variable cost necessary to meet this goal, if the number of units sold is the same as this year.
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Answer by ikleyn(52781)   (Show Source):
You can put this solution on YOUR website! .
There is a simple rule in this forum:
1) ONE AND ONLY ONE problem per post.
2) ONE AND ONLY ONE question per post.
PLEASE. . .
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