Determine the annual worth of the purchase

Reference no: EM13820120

Atlas Long-Haul Transportation is considering installing Valutemp temperature loggers in all of its refrigerated trucks for monitoring temperatures during transit. If the systems will reduce insurance claims by $40,000 per year for 5 years, how much should the company be willing to spend now if it uses an interest rate of 12% per year compounded quarterly? 2) Entrex Exploration and Drilling bought $9 million worth of seamless tubes for its drill collars from Timken Roller Bearing, Inc. At an interest rate of 10% per year compounded semiannually, determine the annual worth of the purchase over a 10 year amortization period.

Reference no: EM13820120

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