A company wants to replace its bridge equipment 7 years from now at an estimated cost...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A company wants to replace its bridge equipment 7 years from now at an estimated cost of $1,200,000. The company will accumulate this amount through the income received from the passengers crossing the existing bridge. The first deposit will be received one month from today and would be deposited at monthly intervals. The account will earn a nominal 12% annual interest to be compounded monthly. The number of passengers passing through the existing bridge for the next seven years is estimated as shown in the following table: During years 1 through 3 4 through 7 Passengers/month 32,000 passengers/month 36,000 passengers/month How much must be collected from each passenger to accumulate $1,200,000 by seven years from now? A company wants to replace its bridge equipment 7 years from now at an estimated cost of $1,200,000. The company will accumulate this amount through the income received from the passengers crossing the existing bridge. The first deposit will be received one month from today and would be deposited at monthly intervals. The account will earn a nominal 12% annual interest to be compounded monthly. The number of passengers passing through the existing bridge for the next seven years is estimated as shown in the following table: During years 1 through 3 4 through 7 Passengers/month 32,000 passengers/month 36,000 passengers/month How much must be collected from each passenger to accumulate $1,200,000 by seven years from now?
Expert Answer:
Answer rating: 100% (QA)
To accumulate 1200000 by seven years from now the company needs to collect 005 f... View the full answer
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
Students also viewed these economics questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Far North Centre (the Centre) is an anti-poverty organization funded by contributions from governments and the general public. For a number of years it has been run by a small group of permanent...
-
4. In cells B4:B15, type a yearly salary for each staff member. Format these values as Currency with no decimal places. 5. Calculate the new salary with a 10% increase in column C. 6. Calculate the...
-
1. Suppose that 80 people must take a certain medication in order for one person to be helped. What is the absolute risk reduction of the intervention? 2. License Plate Game Johnny and Doyle are...
-
Suppose your organization is deciding which of four projects to bid on. Information on each is in the table below. Assume that all up-front investments are not recovered, so they are shown as...
-
Jones, Jackman and Johnson are partners in the consulting firm of Triple J Partners. The balance sheet of the partnership as at 30 June 2025 is set out below. Inventory at 30 June 2026 was \($38700\)...
-
Harriet's Hats is a retailer who buys hats from a manufacturer and then sells them in its stores. The following information includes the company's December 31, 20Y8 Balance Sheet and the details of...
-
15. If y = 3x-4x+2 then slope at x = 1 is: (1) 1 (2) 2 (3) 4 (4) -2 16. sin240 = ? (1) - 2 (3) 3 1/2 17. Value of sin 2 is (4) (2) 12 (1) 23 (2) (3) 90 180 (4) 0 18. The rate of mass of the gas...
-
18. Add the Office field to the Filters area of the Pivot Table. Filter the table so that only organizations with private offices are visible.
-
If there are consistent extraversion - introversion measurement discrepancies between well - validated Big Five measures and the Myers Briggs, there is a convergent validity problem. Why is that a...
-
Part 1 (due Module 2): Identify 25 key benchmarks for hospitals within the U.S. healthcare system. Align the benchmarks into one of the three broad categories- quality, operations, and financial. If...
-
Diseases and Disorders of the Degeneration of Neurons > Discuss a disease or disorder that is caused by the degeneration of neurons that has affected you or someone you know. If you do not have any...
-
Monopolies reduce consumer surplus and create a deadweight loss. This segment talks about several other dynamic costs of monopoly industries. Pick two and discuss why monopolies (versus competitive...
-
What are some ways in which use of indirect instruction can be utilized to make your teaching more engaging and differentiated for all the diverse learners in your classrooms? Explain how factors...
-
Find all numbers that must be excluded from the domain of the rational expression. X-3 x + 9x+8
-
At what temperature velocity of sound in nitrogen gas will be equal to the velocity of sound in air at 25 C? (Assume that air contains 79% nitrogen and 21% oxygen.)
-
DC has unused FTC carryover from 2017 in the separate category for GC income as the result of income generated by a foreign branch. The income was foreign source general category income. In 2018 the...
-
On December 31, Year 1, Precision Manufacturing Inc. (PMI) of Edmonton purchased 100% of the outstanding ordinary shares of Sandora Corp. of Flint, Michigan. Sandora's comparative statement of...
-
As a result of its export sales to customers in Switzerland, the Lenox Company has had Swiss franc denominated revenues over the past number of years. In order to gain protection from future exchange...
-
"Under the equity method, the investment account is adjusted for the inves tor's share of post-acquisition earnings computed by the consolidation method." Explain this statement.
-
The solar system is like an atom in that both (a) are governed principally through the electric force. (b) consist of a central body surrounded by objects moving in elliptical paths. (c) are composed...
-
The nebular theory is based on the observation that the solar system (a) follows patterns indicating that it formed progressively from physical processes. (b) has a structure much like an atom. (c)...
-
When a contracting hot ball of gas spins into a disk shape, it cools faster due to (a) increased radiation transfer. (b) increased surface area. (c) decreased insulation. (d) increased convection...
Study smarter with the SolutionInn App