Determine the equivalent total present worth

Assignment Help Finance Basics

Reference no: EM131955754

Question: Chemical engineers at a Coleman Industries plant in the Midwest have determine that a small amount of a newly available chemical additive will increase the water repellency of Coleman's tent fabric by 20%. The plant superintendent has arranged to purchase the additives through a 5-year contract at $7000 per year, starting 1 year from now. He expects the annual price to increase by 12% per year thereafter for the next 8 years. Additionally. An initial investment of $35,000 was made now to prepare a site suitable for the contractor to deliver the additives. Use I = 15% per year to determine the equivalent total present worth for all these cash flows.

Reference no: EM131955754

Questions Cloud

Experiment to distinguish between the two types of balls : If you were to use the cameras in this laboratory with a view of 1 m, what would be the limiting factor in designing an experiment to distinguish

Thermal energy stored in an object : How is the temperature of an object different than the thermal energy stored in an object? Include properties such as mass, and specific heat in the discussion.

What is the break-even level of operating hours : A chemical plant is considering installing a new water purification system which costs $21500. The expected service life of the system is 10 years.

Scale size of the universe at a previous time : A simple equation to relate the scale size of the universe today to the scale size of the universe at a previous time in the history of the universe

Determine the equivalent total present worth : An initial investment of $35,000 was made now to prepare a site suitable for the contractor to deliver the additives.

Average mass of a galaxy : Pretend galaxies are evenly spaced 2.5 Mpc apart and the average mass of a galaxy is 1011 solar masses. What is the average density of matter in the universe?

How bob dylan uses storm imagery in one of his songs : Explain one example of how Bob Dylan uses storm imagery in one of his songs. What image does he use? Why is it significant?

Design and implementation a comprehensive website : The final project for this course requires the design and implementation of a comprehensive website. Students may choose site goals.

What frequency does the observer detect in 106 hz : If you are approaching a stationary source of EM waves which produces a frequency of 5.2 x 106 Hz and you're moving at speed of 0.24 c (in a vacuum),

User Account

All Pages