How much will you have in a savings account in ten years, if you deposit $1,500 in the account at the end of each year and the account earns 7% interest, compounded annually?

-$20,725

-$16,050

-$15,000

-$25452

Olive Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $250,400. The equipment will have an initial cost of $1,300,600 and have an 8-year life. There is no salvage value for the equipment. If the hurdle rate is 10%, what is the internal rate of return? Ignore income taxes.

-Between 6% and 8%

-Between 8% and 10%

-Greater than 10%

-less than zero

Answer rating: 100% (QA)

The correct answer is Option A which is 20725 Future ... View the full answer