Demco Products, a company that manufactures stainless steel control valves, has a fund for equipment replacement that contains $500,000. The company plans to spend $85,000 each year on new equipment. (a) Estimate the number of years it will take to reduce the fund to no more than $85,000 at an interest rate of 10% per year. (b) Use the NPER function to determine the exact number of years.
What will be an ideal response?
(a) 500,000 = 85,000(P/A,10%,n)
(P/A,10%,n) = 5.8824
From 10% table, n is between 9 and 10 years.
(b) Using the function = NPER(10%,-85000,500000), the displayed n = 9.3 years.
You might also like to view...
The ____________________ drawing shows the shape, location, and orientation of the slot weld.
Fill in the blank(s) with the appropriate word(s).
The rubber of a seal must be “____________________,” that is, the lip of the seal must be soft and springy.
Fill in the blank(s) with the appropriate word(s).
The current organic certification process makes no guarantees about the end product; it only specifies and watches the methods and procedures to grow the produce
Indicate whether the statement is true or false
Thevenin's theorem provides a method for:
A) designing complex series-parallel circuits. B) simplifying complex series-parallel circuits. C) building complex series-parallel circuits. D) all of these.