Q13

Provided the chart if it helps.

To support the growing demand, Cafe YY plans to purchase a new equipment to expand the business. The manager decides to pay this equipment for the next 2 years (24 months). a) Suppose that the market interest rate is 2% per month, and the current price for the equipment is $9,457. How much should Cafe YY pay every month? (9 pts) b) If the current price of the new equipment is $12,746, and Cafe YY will pay $800 every month. What is the implicit r? (Find the r value from a PVIFA table) (9 pts) Calculation-based Questions *** Show your work *** PVIFA Table Periods 1% 2% 3% 4% 5% 6% 1 0.9709 0.9524 0.9434 2 N 0.9901 0.9804 1.9704 1.9416 2.941 2.8839 3.902 3.8077 11.2551 10.5753 21.2434 18.9139 30.1075 25.4888 1.9135 2.8286 3.7171 9.954 16.9355 4 0.9615 1.8861 2.7751 3.6299 9.3851 15.247 18.9083 1.8594 2.7232 3.546 8.8633 1.8334 2.673 3.4651 8.3838 12 24 13.7986 12.5504 14.621 36 21.8323 16.5469 To support the growing demand, Cafe YY plans to purchase a new equipment to expand the business. The manager decides to pay this equipment for the next 2 years (24 months). a) Suppose that the market interest rate is 2% per month, and the current price for the equipment is $9,457. How much should Cafe YY pay every month? (9 pts) b) If the current price of the new equipment is $12,746, and Cafe YY will pay $800 every month. What is the implicit r? (Find the r value from a PVIFA table) (9 pts) Calculation-based Questions *** Show your work *** PVIFA Table Periods 1% 2% 3% 4% 5% 6% 1 0.9709 0.9524 0.9434 2 N 0.9901 0.9804 1.9704 1.9416 2.941 2.8839 3.902 3.8077 11.2551 10.5753 21.2434 18.9139 30.1075 25.4888 1.9135 2.8286 3.7171 9.954 16.9355 4 0.9615 1.8861 2.7751 3.6299 9.3851 15.247 18.9083 1.8594 2.7232 3.546 8.8633 1.8334 2.673 3.4651 8.3838 12 24 13.7986 12.5504 14.621 36 21.8323 16.5469