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PolarNik [594]
3 years ago
6

In an effort to reduce pipe breakage, water hammer, and product agitation, a French chemical company plans to install several ch

emically resistant pulsation dampeners. The cost of the dampeners today is €125,000, but the chemical company has to wait until a permit is approved for its bidirectional port-to-plant product pipeline. The permit approval process will take at least 2 years because of the time required for preparation of an environmental impact statement. Because of intense foreign competition, the manufacturer plans to increase the price only by the inflation rate of 4% each year. Determine the cost of the dampeners in 5 years in terms of (a) then-current euros and (b) constant-value euros?
The cost of dampeners in terms of then-current euros is_________ € .

The cost of dampeners in terms of constant-value euros is______ € .
Business
1 answer:
Genrish500 [490]3 years ago
8 0

Answer:

a)  €152081.6128

b)  €125000

Explanation:

a) The cost of dampners in terms of then-current euros :

current cost x(1 + inflation rate)ⁿ where n is the number of years.

Since the price of dampners is expected to increase only by 4% per year from the current price of €125,000 in 5 years:

We calculate : 125000 (1+0.04)⁵ = €152081.6128

The cost of dampeners in terms of then-current euros is €152081.6128

b) The cost of dampners in terms of constant value will remain as at today's current price if the value of Euros remains constant . Therefore, The cost of dampeners in terms of constant-value euros is €125,000.

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Sally is buying a home and the closing date is set for April 20th. the annual property taxes are $1234.00 and have not been paid yet. The answer is $368.51.

Step 1: Find the daily rate; property taxes for the year ($1234.00) / 365 days = $3.38.

Step 2: Seller will credit buyer from January through midnight the day before closing. Calculate the exact number of days; January 31 + February 28 + March 31 + April 19 = 109 days Step 3: Multiply the daily rate ($3.3808219178) x Number of days (109) = $368.51

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1 year ago
The job of an ethics officer is to serve as a counselor for employees
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True, an ethics officers' role is to act as a counsellor for employees as well as an investigator for the firm.

The Ethics Officer is the company's inner or internal control point for ethical and improper conduct, allegations, objections, and improprieties, as well as providing leadership and guidance on corporate governance problems.

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3 years ago
A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied;
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3 years ago
A father and mother are planning a savings program to put their daughter through college. Their daughter is now 8 years old. She
Anna71 [15]

Answer:

$4,102.57

Explanation:

we must first calculate the future costs of college:

cost of college year 1 = $16,200 x (1 + 2%)¹⁰ = $19,747.71

cost of college year 2 = $19,747.71 x 1.02 = $20,142.66

cost of college year 3 = $20,142.66 x 1.02 = $20,545.51

cost of college year 4 = $20,545.51 x 1.02 = $20,956.42

in order to determine how much money does the family need to have before college starts we must discount the cost of college by 7.5%:

PV cost of college year 1 = $19,747.71

PV cost of college year 2 = 20,142.66 / 1.075 = $18,737.36

PV cost of college year 3 = $20,545.51  / 1.075² = $17,778.70

PV cost of college year 4 = $20,956.42  / 1.075³ = $16,869.09

total = $73,132.86

the future value of the grandmother's deposits:

$13,000 x (1 + 7.5%)¹⁴ = $35,781.77

$2,900 x (1 + 7.5%)¹² = $6,907.16

total = $42,688.93

that means that you will need to save $73,132.86 - $42,688.93 = $30,443.93 by the time your child turns 18

you will make 4 deposits and their future value will be:

deposit x 1.075¹⁰ = 2.0610D

deposit x 1.075⁹ = 1.9172D

deposit x 1.075⁸ = 1.7835D

deposit x 1.075⁷ = 1.6590D

total = 7.4207D

yearly deposit = $30,443.93 / 7.4207 = $4,102.57

4 0
2 years ago
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1 MONTH (SO far) $125.26 + $987.25 - ( rate: 1x $15.00) - $43.22 - $57.26 + $100.00
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Answer is A
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3 years ago
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