Question: Question 3: Complete the following (rounded to the nearest cent): Investment Interest Rate Compounded Years PV 6% Annually SS10,000.00 10% Annually 8 $5,820.00 3% Annually
Question 3: Complete the following (rounded to the nearest cent): Investment Interest Rate Compounded Years PV 6% Annually SS10,000.00 10% Annually 8 $5,820.00 3% Annually 12 S493.00 7.50% Annually 3S27,893.00 11.25% Annually 20 87,236,50 2.80% Annually 11 ? 385,000.00 5% Annually 7 ? 530,563.50 13.20% Annually 18 75259,000.00 8.90% Annually 23 25752,520.00 10 4.20% Annually 15 $160,500.00 Total Marks (10 points) Question 4: Based on the information provided, determine which machine should purchased? Fill in the blanks in the table below and answer the question at the bottom. Machine A Machine Cash Cost New Equipment Purchase Cost 550,000.00 542,300.00 Estimated Life 4 years Rexidunt Value $21.000.00 $17.580.00 4 years Anmal Depreciation Savings. Wates of Staff $18,000.00 $18,000.00 Expenses Maintenance Supplies Depreciation Total Expenses $1,230.00 $1,450.00 $1,000.00 $1,100.00 2 Net Savings before income tax) Income Tax (0%) Net Annual Savings Machine A Machine B What is the average investment? What is the Accounting Rate of Return? (Rounded to the nearest whole number) What is the payback period? (Rounded to the nearest hundredth place) Which machine should be purchased? Total Marks (19 Points)
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