(PROBLEM #4 - 25 marks) Your company has a $500,000. loan for a new robotic machining...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(PROBLEM #4 - 25 marks) Your company has a $500,000. loan for a new robotic machining center it just bought. The interest rate for this loan is 6% per year and your company's initial plan is to pay for the loan in exactly 30 years. Annual payment is made at the end of each year. ( ) What is the Annual Payment your company has to pay at the end of each year? (a) $41,350 (b) $45,000 (c) $6,325 (d) $16,667 (e) $36,325 Based on the initial annual payment calculated above, your company has now decides that it can afford to pay $50,000 per year, which is more than the initial annual payment. ( ) By paying $50,000 annually, after how many payments (years) will the loan of $500,000. be paid off? Assuming the same interest rate is used, i.e. 6% annually. (a) 14 years (b) 15 years (c) 16 years (d) 17 years (e) 18 years ( ) By paying $50,000 annually, how much is the last payment. (a) $50,000 (b) $14,390 (c) $40,010 (d) $36,556 (e) $16,537 According to the loan, this robotic machining center's present worth is $500,000. We estimate that this machining center has a life of 20 years with zero salvage value at the end of the 20 years. ) Using the straight-line depreciation model, what is the book value of this machining center at the end of the 5th year? (a) $125,000. (b) $375,000. (c) $200,000. (d) $100,000. (e) $400,000. ( ) Using the declining-balance depreciation (DBD) model with d=10%, what is the depreciation charge in the 5th year? (a) $32,805. (b) $29,525. (c) $295,245. (d) $204,755. (PROBLEM #4 - 25 marks) Your company has a $500,000. loan for a new robotic machining center it just bought. The interest rate for this loan is 6% per year and your company's initial plan is to pay for the loan in exactly 30 years. Annual payment is made at the end of each year. ( ) What is the Annual Payment your company has to pay at the end of each year? (a) $41,350 (b) $45,000 (c) $6,325 (d) $16,667 (e) $36,325 Based on the initial annual payment calculated above, your company has now decides that it can afford to pay $50,000 per year, which is more than the initial annual payment. ( ) By paying $50,000 annually, after how many payments (years) will the loan of $500,000. be paid off? Assuming the same interest rate is used, i.e. 6% annually. (a) 14 years (b) 15 years (c) 16 years (d) 17 years (e) 18 years ( ) By paying $50,000 annually, how much is the last payment. (a) $50,000 (b) $14,390 (c) $40,010 (d) $36,556 (e) $16,537 According to the loan, this robotic machining center's present worth is $500,000. We estimate that this machining center has a life of 20 years with zero salvage value at the end of the 20 years. ) Using the straight-line depreciation model, what is the book value of this machining center at the end of the 5th year? (a) $125,000. (b) $375,000. (c) $200,000. (d) $100,000. (e) $400,000. ( ) Using the declining-balance depreciation (DBD) model with d=10%, what is the depreciation charge in the 5th year? (a) $32,805. (b) $29,525. (c) $295,245. (d) $204,755.
Expert Answer:
Answer rating: 100% (QA)
4a PV of Loan 500000 Rate 6 Number of Years 30 Annual P... View the full answer
Related Book For
Essentials of Business Statistics Communicating With Numbers
ISBN: 978-0078020544
1st edition
Authors: Sanjiv Jaggia, Alison Kelly
Posted Date:
Students also viewed these economics questions
-
According to the Centers for Disease Control and Prevention, life expectancy at age 65 in America is about 18.7 years. Medical researchers have argued that while excessive drinking is detrimental to...
-
A job shop has work centers arranged as follows: Assume that it costs $1/unitary distance and that the monthly loads are as shown in the following From/To matrix. a. Calculate the load-distance cost...
-
A loan of $10 000 with interest at 6.72% compounded quarterly is repaid by payments of $950 made at the end of every six months. (a) How many payments will be required to amortize the loan? (b) If...
-
Your friend Jin is working at Company AUS Toys, an Australian manufacturing company, selling toys to Company Toy Shop. Company Toy Shop also buys toys from Company CNY Toys in China which has fixed...
-
In an experiment analogous to that in Figure 27-3, the sampling constant is found to be Ks = 20 g. (a) What mass of sample is required for a 2% sampling standard deviation? (b) How many samples of...
-
A family of pdf's that has been used to approximate the distribution of income, city population size, and size of firms is the Pareto family. The family has two parameters, k and , both > 0, and the...
-
A box of 15 spark plugs contains one that is defective. In how many ways can 4 spark plugs be selected so that (a) the defective one is selected; (b) the defective plug is not selected?
-
1. What is the underlying issue behind endpoint security, and why is it becoming even more difficult for companies to address it? Define the problem in your own words using examples from the case. 2....
-
Prospect Y = ($5, 0.25 ; $16, 0.75) If Will's utility of wealth function is given byu(x)=x^0.25, what is the value of CE(Y) for Will? (In other words, what is Will's certainty equivalent for prospect...
-
The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...
-
Problem 2 . Mr. and Mrs. Smith are planning for retirement which they hope to begin five years from today. They expect that retirement will last for 25 years. During each of the years in retirement...
-
K 9(x+1)=3-2(9x+4) x= (Type an integer or a fraction. Simplify your answer.)
-
A restaurant received an 18% discount on a purchase of fifteen 1.14 L. Bottles of Wine, selling for 12.50 per bottle. What is the total cost with the discount plus HST (13%)
-
At the metal-casting company where you work, you must set up a conveyor system to move castings from the furnace to the heat treatment area 55 yards away. The castings cool at the rate of 0.3F...
-
Identify the numbered fragments that do not create or contribute to a conversational tone. When I first arrived at our agency almost four years ago, I could not have imagined how much I would learn...
-
This week's discussion revolves around the analysis and recording of financial transactions. At the onset of bookkeeping, the crucial steps involve preparing journal entries, ledger accounts, and the...
-
Tech Case 1 (20 points maximum) Objective: Tech Case 1 is designed to help you apply course content from chapters 2 and 3 to a real world technological innovation. All assignments are to be...
-
The Thomas Corporation was organized on Jan. 1, 2020. On Dec. 31, 2021, the corporation lost most of its inventory in a warehouse fire before the year-end count of inventory was to take place. just...
-
When estimating the selling price of a used sedan as a function of its age using the model Price = β0 + β1Age + , a researcher gets the following ANOVA results: a. How many...
-
Access the weekly stock price data for Home Depot on the text website (Home_Depot). Assume that returns are normally distributed with a population standard deviation of $3. a. State the null and the...
-
David Anderson has been working as a lecturer at Michigan State University for the last three years. He teaches two large sections of introductory accounting every semester. While he uses the same...
-
Find an example of (angles corresponding to) another violation of the Bell-CHSH inequality by quantum mechanics, which is not maximal but is more generic.
-
In quantum cosmology, one can define a "wave function of the Universe" \(\Psi[a(t)]\), whose variable is the expanding scale factor of the Universe, \(a(t)\), and which satisfies a general relativity...
-
If we consider five measurements instead of the four in the Bell-CHSH inequality, namely \ (a, a^{\prime}, a^{\prime \prime}\) for Alice and \ (b, b^{\prime}\) for Bob, can we extend the Bell-CHSH...
Study smarter with the SolutionInn App