How much money can a production company that makes fluidized bed scrubbers spend now instead of...

Question

Question

business accounting

Answer 1

Answer #1

Future Value = Present Value * (1+Rate of interest /100) ^ Time

$ 135,000= Present Value * (1.07) ^3 *(1.13) ^ 2

$ 135,000 = Present Value * 1.564257407

Present Value = $ 135,000 / 1.564257407

Hence the correct answer is $ 86,302.93

Answer 2

Similar Homework Help Questions

How much money could Honda Inc., a motor maker, afford to spend now on new project...

How much money could Honda Inc., a motor maker, afford to spend now on new project instead of spending $900,000 eight years from now, if the company’s rate of return is 15% compound interest per year? $548,780 $294,210 $514,400 $1,665,800
In order to update a production process, a company can spend money now or four years...

In order to update a production process, a company can spend money now or four years from now. If the amount now would be $25,000 , what equivalent amount could the company spend four years from now at a compound interest rate of 15% per year? (All the alternatives presented below were calculated using compound interest factor tables including all decimal places) Question 17 options: $71,375 $14,295 $43,725 $36,603
1 The amount of money that Diamond Systems can spend now for improving productivity in lieu...

1 The amount of money that Diamond Systems can spend now for improving productivity in lieu of spending $30,000 three years from now at an interest rate of 12% per year is (a) $15,700 (b) $17,800 (c) $19,300 (d ) $21,350

How much can Haydon Rheo systems(F) , Inc., afford to spend now on an energy management system if the software will sav...

How much can Haydon Rheo systems(F) , Inc., afford to spend now on an energy management system if the software will save the company $21,300(A) per year for the next 5 years? Use an interest rate of 10% per year
of per year How much could Ahmad's Construction Company afford to spend on new weet each...

of per year How much could Ahmad's Construction Company afford to spend on new weet each year for the next 3 years if it expects a profit of $50 million 3 years from now? Assume the company's MARR is 20% per year ras Construction wants to have enough money available 5 years from now to purchase a ne ctor-trailer. If the estimated cost is $250,000, how much should the company set aside cac ar if the funds eam 10% per...
QUESTION 4 With an interest rate of 1 2%, how much money can be lent now...

QUESTION 4 With an interest rate of 1 2%, how much money can be lent now if $13,000 will be repaid at the end of 4 years? QUESTION 5 With an interest rate of 19% compounded annually, how much will be required in 13 years to repay a $34,000 loan received today?

Question 3 1 pts The amount of money that CamCam can spend now for improving productivity...

Question 3 1 pts The amount of money that CamCam can spend now for improving productivity in lieu of spending $10,000 eight years from now at an interest rate of 10% per year is closest to less than 15,000 between 15000-16,500 between 16,500-18,000 higher than 18,000 None of the answers is correct
b. If the company makes the first deposit one year from now, how much should each...

b. If the company makes the first deposit one year from now, how much should each deposit be? 3. A start-up internet service provider expects to lose money in each of the first four years. Losses are projected to be $50 million in year one, $40 million in year two, $30 million in year three and $20 million in year four. An interest rate of 10% per year is used. a. What is the present worth of the losses for...
How much money must be deposited now at 7.0% interest per year so that $45,000 can...

How much money must be deposited now at 7.0% interest per year so that $45,000 can be withdrawn at the end of every year for the next 20 years?

You spend about $40,000 in a year now. If prices increase 2.2% per year, how much...

You spend about $40,000 in a year now. If prices increase 2.2% per year, how much money will you need to spend to maintain your standard of living in 30 years? Your Answer: