Problem 1: Determine the future worth in year 10 of a cash flow series that starts in year 0 at $100,000 and decreases by 12% per year. Use an interest rate of 12% per year.
Problem 2: In order to have cash available for unforeseen emergencies, Baring Systems, a military contractor, wants to have $2,000,000 in a contingency fund 4 years from now. The amount the company must deposit each year in years 0 through 4 at an interest rate of 10% per year is closest to?
Problem 3: An office building costs an average of $3.50 per square foot to heat and cool. What is the total annual heating and cooling cost of an office building that has 10,000 square meters of space?
Problem 4: Revenue from the sale of ergonomic hand tools was $300,000 in years 1 through 4 and $465,000 in years 5 through 9. Determine the equivalent annual revenue in years 1 through 9 at an interest rate of 10% per year.
Problem 5: A small oil company is planning to replace its Coriolis flow meters with Emerson flow meters. The replacement process will cost the company $50,000 three years from now. How much money must the company set aside each year beginning now (year 0) in order to have the total amount available immediately after making the last deposit at the end of year 3? Assume the company can invest its funds at 15% per year.