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Yuki888 [10]
3 years ago
6

Final Finishing is considering 3 mutually exclusive alternatives for a new polisher. Each alternative has an expected life of 15

years and no salvage value. Polisher 1 requires an initial investment of $23,400 and provides annual benefits of $4,395. Polisher 2 requires an initial investment of $13,600 and provides annual benefits of $1,820. Polisher 3 requires an initial investment of $18,600 and provides annual benefits of $3,640. MARR is 15%/year. What is the future worth of Polisher 1?
Business
1 answer:
k0ka [10]3 years ago
6 0

Answer:

$18,708.66

Explanation:

The future worth of Polisher 1 can be computed using the future value formula in excel stated below:

=fv(rate,nper,pmt,-pv)

rate is the minimum acceptable rate of return of 15%

nper is the number of years of investment i,e 15 years

pmt is the yearly cash inflow of $4,395

pv is the amount committed to the investment,$23,400

=fv(15%,15,4395,-23400)=$18,708.66

The future worth of polisher 1 is $18,708.66

This implies that the investment is not likely to be worthwhile since the future worth is less than present worth of $23,400

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Answer:

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Explanation:

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If the United States imports more than it exports, then this means that the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus.

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<em><u /></em>

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