Capitalized equivalent worth of infinite annuity

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Reference no: EM132071407

1. What is the DISCOUNTED payback period (decimal YEARS) for an investment of $48,000 with an annual investment income of $6,000 starting at the end of the first year (i=6% annual).

2. What is the Capitalized Equivalent worth of an infinite annuity of $1,000 paid every other year, when the interest rate is 11% annually?

3. A machine costs $80,000 to purchase and generates an annual revenue of $26,000 with an $8,500 annual cost. Assume that your time value of money (MARR) is 7% annually, and this machine lasts 6 years. What is the Annual Equivalent Worth of this machine?

Reference no: EM132071407

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