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Andrei [34K]
3 years ago
9

On January 15, 2020, Dolan Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, 2024, at an

estimated cost of $8,000,000. Dolan plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, 2020. Future value factors are as follows: Dolan should make four annual deposits ofA. $2,000,000 B. $1,567,060 C. $1,723,766. D. 54,967,401
Business
1 answer:
Andreyy893 years ago
6 0

Answer:

Annual deposit (PMT) = $1,567,060.39

Explanation:

Given:

Future value of annuity due = $8,000,000

Rate of interest(r) = 10% = 0.1

Number of year (n) = 4 year

Annual deposit (PMT) = ?

Computation of annual deposit :

Future\ value\ of\ annuity\ due = PMT [\frac{(1+r)^n-1}{r} ](1+r)\\\\8,000,000 = PMT [\frac{(1+0.1)^4-1}{0.1} ](1+0.1)\\\\8,000,000 = PMT [\frac{(1.1)^4-1}{0.1} ](1.1)\\\\8,000,000 = PMT [\frac{(0.4641}{0.1} ](1.1)\\\\8,000,000 = PMT [5.1051]\\PMT = 1,567,060.39

Annual deposit (PMT) = $1,567,060.39

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3 years ago
The management at Climate Action Development needs to recruit campaign managers for its Renewable Energy Project. They are looki
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3 years ago
Suppose your principal objective is to maximize the selectivity of monochloroethane production relative to dichloroethane produc
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We are given the series of chemical reactions:

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But some of the product monochloroethane becomes further chlorinated by an undesired side reaction:

C2H5Cl + Cl2 --> C2H4Cl2 + HCl 

 

So to avoid the product monochloroethane to be further chlorinated, there must be fast processing or fast conversion of ethane so that there would less time for further chlorination. Hence we must design the reactor for high conversion of ethane.

 

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Answer:

$69,000

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The double-declining method uses twice the rate of the straight-line depreciation method.  

In this case, we need to determine the depreciation rate under the straight-line method. The asset has a useful life of 5 years.

the depreciation rate = 1/5 x 100

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