How to find the semiannual a value

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The Getz Pharma has purchased a robotized system for faster and more accurate delivery to patient with stable, pill-form medication for chronic health problems. Assume this system costs Rs.3 million to install and an estimated Rs.200,000 per year for all maintenance. The expected life is 10 years. A Getz pharma biomedical engineer wants to estimate the total revenue requirement for each 6 months period that is necessary to recover the investment, interest and annual costs.

Question 1: Find the semiannual A value, if capital funds are evaluated at 8% per year using two different compounding periods: (a) 8% per year, compounded semiannually (b) 8% per year, compounded monthly (Draw cash flow diagram with two different compounding periods)

Reference no: EM132580381

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