The first cost of a certain piece of machinery is $60,000. The machine will be used...

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The first cost of a certain piece of machinery is $60,000. The machine will be used for five years, after which time it will be salvaged for $10,000. The machine's operating cost is expected to be $20,000 per year. If the inflation rate is 4% per year and the company's minimum attractive real rate of return is 20% per year, find the present worth of this machine. If a person deposits $1,000 now into a savings account for 10 years, what is the amount required to maintain the purchasing power of the present sum and earn a stated real rate of return, using a 6% per year inflation and a real 8% per year interest rate? Company X is earning a real interest rate of 20% per year. If the company assumes the inflation rate is 8% per year, find the market adjusted rate. The first cost of a certain piece of machinery is $60,000. The machine will be used for five years, after which time it will be salvaged for $10,000. The machine's operating cost is expected to be $20,000 per year. If the inflation rate is 4% per year and the company's minimum attractive real rate of return is 20% per year, find the present worth of this machine. If a person deposits $1,000 now into a savings account for 10 years, what is the amount required to maintain the purchasing power of the present sum and earn a stated real rate of return, using a 6% per year inflation and a real 8% per year interest rate? Company X is earning a real interest rate of 20% per year. If the company assumes the inflation rate is 8% per year, find the market adjusted rate.

Answer rating: 100% (QA)

1 NPV 60000 PVOperating Costs PVSalvage Value PVOperating Costs 20000 1 020 0041 20000 1 020 0042 20... View the full answer