Electric car maker Gentech signed a $75 million contract with Power Systems, Inc. to automate a major part of its assembly line system. If Power Systems will be paid 2 years from now, when the systems are ready, determine the present worth of the contract at 18% per year interest.
What will be an ideal response?
P = 75(P/F,18%,2)
= 75(0.7182)
= $53.865 million
Trades & Technology
You might also like to view...
What grading practice describes the removal of earth from a slope?
a. filling c. sloping b. stripping d. cutting
Trades & Technology
Three basic types of switches are used in general wiring, the single-pole, the ____, and the four-way.
a. two-way b. three-way c. double-pole d. neutral
Trades & Technology
If X ~N(2, 9), compute
a. P(X ? 2) b. P(1 ? X <7) c. P(–2.5 ? X< – 1) d. P(–3 ? X – 2<3)
Trades & Technology
The provisions of ASTM refer primarily to:
A. architecture. B. construction methods. C. materials and testing. D. Unfired Pressure Vessel Standards. E. road building materials,
Trades & Technology