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kykrilka [37]
3 years ago
11

Improvised explosive devices (IEDs) are responsible for many deaths in times of strife and war. Unmanned ground vehicles (robots

) can be used to disarm the IEDs and perform other tasks as well. If the robots cost $170,000 each and the military arms unit signs a contract to purchase 3,000 of them now and another 7,500 one year from now, what is the equivalent annual cost of the contract over a 4-year period at 8% per year interest?
Business
1 answer:
ludmilkaskok [199]3 years ago
8 0

Answer:

Equivalent annual cost ($) 294,177,861.7

Explanation:

Present \ Worth\ (PW) ($) = 3,000 \times  170,000 + 7,500 \times 170,000 \times PVIF (8%, 1)

From PVIF table, the value of PVIF (8%, 1)  is 0.9259

= 510,000,000 + 1,275,500,000 \times  0.9259

= 510,000,000 + 1180522500

= 1,690,522,500

Equivalent annual cost ($) = \frac{PW}{PVIFA (8 percentage, 8)}

from PVIF and PVIFA table, the value of PVIFA (8 %, 8) is 5.7466  

= \frac{1,690,522,500}{ 5.7466} = 294,177,861.7

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Answer:

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24                                                                     86.7%

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22                                                                      87.8%

21                                                                      88.3%

20                                                                      88.9%

19                                                                      89.4%

18                                                                      90.0%

17                                                                      90.6%

16                                                                      91.1%

15                                                                      91.7%

14                                                                      92.2%

13                                                                      92.8%

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