Purchasing new cooling system

Assignment Help Business Economics

Reference no: EM13889231

The Gentle Warming Company is purchasing a new cooling system. To pay for the system, the company agrees to make 12 installment payments of $8186 per year, beginning at the end of year 1. The company also has to pay a system fee of $2328 that will begin at the end of year 1 and decrease by $199 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: EM13889231

Questions Cloud

Business leaders is still the ceo of their company? : business leaders is still the CEO of their company?

Annual withdrawals : How much do you have to deposit today in order to allow 6 annual withdrawals, beginning at the end of year 17, with a first withdrawal of $1403 and with subsequent withdrawals decreasing at the rate of 2% over the previous year’s withdrawal? Assume a..

For retirement-compounded annually : For retirement, you decide to deposit $1329 at the end of each year and you will increase your deposit by $105 per year. How much will you have at the end of 20 years if the bank pays 2.5% compounded annually?

Determine the system function : A causal discrete-time LTI system is described by y [n] - iY [n -1] + y [n - 2] =x [n] where x[n] and y[n] are the input and output of the system, respectively. (a) Determine the system function H(z).

Purchasing new cooling system : The Gentle Warming Company is purchasing a new cooling system. To pay for the system, the company agrees to make 12 installment payments of $8186 per year, beginning at the end of year 1.

Why can such a recession be prolonged : Why, according to Keynes, is an economy in recession and why can such a recession be prolonged? Illustrate and discuss

Write the equation for the iso-cost line and plot : Suppose that price of capital is $1 and price of labor is $2 and total outlay is $16. Write the equation for the iso-cost line and plot it on the same graph with the iso-quants.

Explain what effects reduction in the interest rate : Consider a small open economy that maintains a fixed exchange rate. Explain what effects a reduction in the interest rate that prevails in world financial markets would have on each of the following domestic variables after the economy has adjusted t..

Essay about social networking and its positives on society : Social Networking has been around long enough to consider the positives and negatives that it provides to society. Use recent events to discuss cases from the last 2 years.

User Account

All Pages