Question: A utility company provides stand by power using diesel powered generators. An alternative has been developed using natural gas but the gas will not

A utility company provides stand by power using diesel powered generators. An alternative has been developed using natural gas but the gas will not be available for 3 years. By switching to gas they will save 13,000 per year for 10 years starting three years from today. At an interest rate of 6% what is the annual worth of the savings over the next 12 years O 10,157 O 12,789 O 14,879 O 22,656

Step by Step Solution

★★★★★

3.39 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

saving amount LPMT 13000 NO of years 1oyears Inte... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

In 20X0, the Northwest Ballet Association (NBA), a not-for profit performing arts organization, undertook a major capital campaign to fund a new theater, expected to cost $10 million. It was quickly...

A company borrowed $180,000 at an interest rate of 9% compounded annually over six years. The loan will be repaid in installments at the end of each year according to the accompanying repayment...

For how many months, at an interest rate of 1% per month, does money have to be invested before it will double in value?

Maximize profits for a monopolistic firm producing two related goods, i.e., P = f(Q, Q) when the goods are substitutes and the demand and total cost functions are P = 80-5Q-2Q2 P = 50-Q3Q2 TC = 3Q +...

1- Katie Pairy Fruits Inc. has a $2,100, 22-year bond outstanding with a nominal yield of 18 percent (coupon equals 18% $2,100 = $378 per year). Assume that the current market required interest rate...

a. Use the Black-Scholes formula to find the value of the following call option. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Time to expiration 1 year....

Use the Black Scholes formula to find the value of the following call option. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Time to expiration 1 year....

The Lexington Property Development Company has a $10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is a. 9%? b. 12% compounded monthly?...

I wanna have a answer for the first part about PMC company.....page 1-9 thank you so much as soon as possible Assessment task 1 budgets and forecasts FNS ACCT 503B: Manage Analysis of financial plans...

hello, i want test Answers, please Help me.. Thank u. Student Guide BSBFIM501: Manage Budgets and Financial Plans Unit of Competency This module is comprised of the following unit of competency:...

Twin Peaks, a power company, seeks to acquire an electric generating plant for $400 million to expand its market share. It expects to sell the electricity generated by the plant acquisition at a...

(a) Calculate the mass attenuation coefficient of silica glass (SiO2, = 2.21 g/cm3) for 5-MeV -rays. (b) What thickness of silica glass is required to reduce the intensity of a 5-MeV -ray beam by a...

Find the roots of the following quadratic equations, if they exist, by the method of completing the square: (i) 2x-7x+3=0 (ii) 2x+x-4=0 (iii) 4x +43x +3=0 (iv) 2x+x+4=0

Question 1 2 ( 1 point ) Market share refers to 1 ) the ratio of the profit of the firm to the total profits of all firms in the industry, excluding the firm itself. the ratio of the profit of the...

Clearwater Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs: Three plates are required per...

Secure Homes is pondering an opportunity to produce and sell a new smart home monitoring system that can be managed remotely using a smartphone app. The company has gathered the following data on...

City Place Movie Theaters has four employees and pays them on an hourly basis. During the week beginning June 24 and ending June 30, 2019, these employees worked the hours shown below. Information...

You have spent two years working as an auditor. In that time, you have come across a number of errors in performing bank reconciliations. Outlined below are some of them: 1. An unreconciled item of...

Given the following data: Period 1 2 3 4 5 6 7 8 9 Gross Requirements 70 30 90 30 80 20 90 60 80 The beginning inventory is 0 and there are no scheduled receipts. The order cost is $90 and the...

__________ are more likely to receive a "call back" than __________. Group of answer choices Black men; Latino men White men with a criminal record; black men with no criminal record Black men with...

A utility company provides stand by power using diesel powered generators. An alternative has been developed using natural gasbut the gas will not be available for 3 years. By switching to gasthey...

Centrum Water & Gas provides standby power to pumping stations using diesel-powered generators. An alternative is the use of natural gas to power the generators, but it will be a few years before the...

A company has agreed to purchase $15,000 worth of items each year for five years with the first purchase being made two years from today. What is the present value of these purchases at 10% interest....

Kindly help. 3. The extensive form of a 2-person game is as follows: 1/2 1/2 1 b C d C e [8] [:][3] [8] [3] [10] (a) What are the pure strategy sets for players I and II. (b) Derive the normal...

The final answer in the second picture , I need the steps please A rural utility company provides standby power to pumping stations using diesel- powered generators. An alternative has arisen whereby...