Company is purchasing new cooling system

Assignment Help Financial Management

Reference no: EM131955194

The Gentle Warming Company is purchasing a new cooling system. To pay for the system, the company agrees to make 12 installment payments of $7741 per year, beginning at the end of year 1. The company also has to pay a system fee of $1340 that will begin at the end of year 1 and decrease by $176 per year until the system is paid off. How much should the company set aside today to pay for the cooling system if the bank pays 3% per year compounded annually?

Reference no: EM131955194

Questions Cloud

Star schema for simplified automobile insurance company : You are to construct a star schema for Simplified Automobile Insurance Company. The relevant dimensions, dimension attributes, and dimension sizes are as follow

Make the desired withdrawals at retirement : What amount must she deposit annually now to be able to make the desired withdrawals at retirement?

Explain the scientific methods of behavior-based safety : Scholarly Activity Behavior-Based Safety (BBS) - "DO IT Method" This project addresses the application of the scientific methods of Behavior-Based Safety (BBS).

List the factors that are inclusive of alcoholism : List the factors that are inclusive of alcoholism. Talk about binge drinking. What other factors can contribute to alcohol abuse issues?

Company is purchasing new cooling system : The Gentle Warming Company is purchasing a new cooling system. How much should company set aside today to pay for the cooling system if bank pays 3% per year

What is creativity and innovation : What is creativity and innovation? What are the key theories and findings of creativity and innovation research?

Existing computerized process : Think of a simple process from your own experience that could be modeled with a FSM and post it to the forum.

How the assessment result will inform instructional planning : How the assessment results will inform instructional planning. How the informal assessment you've chosen will accurately evaluate the needs of all the students?

Analyze the specific actions of the selected country : Analyze the specific actions that the leadership of the selected country has taken, through the use of its foreign aid from donor nations and international.

User Account

All Pages