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Dovator [93]
3 years ago
11

Rubbermaid Plastics plans to purchase a rectilinear robot for pulling parts from an injection molding machine. Because of the ro

bot’s speed, the company expects production costs to decrease by $100,000 per year in each of the first 3 years and by $200,000 per year in the next 2 years. What is the present worth of the cost savings if the company uses an interest rate of 15% per year on such investments?
Business
1 answer:
liubo4ka [24]3 years ago
3 0

Answer:

The present worth of the cost savings if the company uses an interest rate of 15% per year on such investments is $442108.5079.

Explanation:

Present Worth = $100,000/(1 + 15%) + $100,000/(1 + 15%)^2 + $100,000/(1 + 15%)^3 + $200,000/(1 + 15%)^4 + $200,000/(1 + 15%)^5

                         = $442108.5079

Therefore, the present worth of the cost savings if the company uses an interest rate of 15% per year on such investments is $442108.5079.

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The fixed costs of WeBuy&Sell.com, an e-commerce website, make up about 90 percent of the total costs incurred by the compan
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In Appellia, it takes 10 units of resources to increase its output of sugar from 12 tons to 13 tons, but 11 units of resources t
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b. diminishing returns to specialization.

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E-Tech Initiatives Limited plans to issue $500,000, 10-year, 4 percent bonds. Interest is payable annually on December 31. All o
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Answer:

E-Tech Initiatives Limited

Partial balance sheet

as on January 2, 2019

Liabilities

Long term Liabilities

Bond Payable ________________ $500,000

Add: Premium on Bond _________ <u>$10,000   </u>

_____________________________________ $510,000

Explanation:

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