Davis Inc. has budgeted payments of $11,600 a year to buy new equipment. At a 7%...
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Davis Inc. has budgeted payments of $11,600 a year to buy new equipment. At a 7% discount rate, the company plans to finance annual payments for 5 years with payments at the end of each year. What is the cost of equipment that Davis can afford? (For calculation purposes, use five decimal places as displayed in the factor table provided. Round your answer to two decimal places (e.g., 52.75).) Table 4: Present Value of an Annuity of 1 (n) Payments 4% 5% 6% 7% 8% 1 .96154 .95238 .94340 .93458 .92593 2 1.88609 1.85941 1.83339 1.80802 1.78326 3 2.77509 2.72325 2.67301 2.62432 2.57710 4 3.62990 3.54595 3.46511 3.38721 3.31213 5 4.45182 4.32948 4.21236 4.10020 3.99271 Cost of equipment $ Davis Inc. has budgeted payments of $11,600 a year to buy new equipment. At a 7% discount rate, the company plans to finance annual payments for 5 years with payments at the end of each year. What is the cost of equipment that Davis can afford? (For calculation purposes, use five decimal places as displayed in the factor table provided. Round your answer to two decimal places (e.g., 52.75).) Table 4: Present Value of an Annuity of 1 (n) Payments 4% 5% 6% 7% 8% 1 .96154 .95238 .94340 .93458 .92593 2 1.88609 1.85941 1.83339 1.80802 1.78326 3 2.77509 2.72325 2.67301 2.62432 2.57710 4 3.62990 3.54595 3.46511 3.38721 3.31213 5 4.45182 4.32948 4.21236 4.10020 3.99271 Cost of equipment $
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Related Book For
Engineering Economic Analysis
ISBN: 9780195168075
9th Edition
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
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