managerial excel chapter 13

52 Exercise 4 53 If you want to withdraw $35000 each year for 30 years, how much would you need to have saved today to fund these withdrawals? (Assume a 7% annual return.) Submit your answer. 56 57 58 59 66 Exercise 5 If you purchase a machine and borrow $20000, what will your approximate monthly payment be if you pay back the loan over 5 years. Assume a 10% interest rate, 67 Submit your answer. 70 71 72 73 74 80 Exercise 6 You are considering purchasing a new machine for $80000 that will save $15000 per year for 8 years. If cost of capital is 12%, what is the net present value (NPV) of buying the new machine? 81 84 85 Submit your answer. 86 87 88 Should you purchase the machine? 91 92 93