What is the present worth of the total 20 payments


1) What is the present worth of the total 20 payments, occurring at the end of every four months (i.e. the first payment is in four months), which are $400, $500, $600, increasing by a fixed sum. Interest is 10% nominal per year, compounded weekly.

2) Octavia is looking at an investment in upgrading an inspection line at her plant. The initial cost would be $150,000 with a salvage value of $40,000 after five years. How much money must be saved every year to justify the invest at an interest rate of 15%?

3) Octavia is looking at an investment in upgrading an inspection line at her plant. The initial cost would be $150,000 with a salvage value of $40,000 after five years. How much money must be saved every year to justify the invest at an interest rate of 15%?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the present worth of the total 20 payments
Reference No:- TGS02700735

Expected delivery within 24 Hours