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What will be the balance of the account at the end of years

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Problem -

If $41500 is deposited in a savings account at the end of each year and the account pays interest of 5% compounded annually, what will be the balance of the account at the end of 10 years?

Using the hurdle rate is 8% and the cost of the earth mover is $130,00. Find the factor for 10 years at 8%. Multiply $20,000 by the new factor and deduct the cost of the new equipment. If positive, accept the project, if negative reject it.

Reference no: EM132906419

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