Bought a  camp spot at the big lake to use your boat. It will cost $70,000 and you have 15 years to make this work.Place $2,500 in to the account at the end of each year. No balance on year 0. First deposit is on year 1.But, you know that won't get you there.
You are expecting some bonds to mature in 6 years. (start the savings account now.. 6 years from now, you will have $$ from bonds).If you can get a 3.5% rate on you account (PYCY)... how much do you need from your bonds to make this work?

 

3.The company is preparing to launch a new product over the next 10 years.The equipment to make this new product will have an initial cost of $164000 to the company. At the end of the project, you believe you can get $26000 for the equipment as salvage.Supplies will cost $1700 the first year and go up by $775 each year.Maintenance costs start at $1610 the first year and will increase by 1.95% each yearThe company expects to make $18700 the first year and this will increase by 2.05% each year.


If the interest rate is 3.9%, what will be the NPV of the project?

Answer rating: 100% (QA)

To determine the amount needed from your bonds to make the camp spot purchase work you would need to ... View the full answer