Income from recycling the paper and cardboard generated in an office building has averaged $3000 per month for the past 3 years. What is the income stream’s equivalent worth now at an interest rate of 8% per year, compounded quarterly?

What will be an ideal response?


Move cash flows to end of each quarter; find F
F = 9000(F/A,2%,12)
= 9000(13.4121)
= $120,709

Trades & Technology

You might also like to view...

The step-motor valve uses a small motor to control the valve's port, which in turn controls evaporator superheat.

Answer the following statement true (T) or false (F)

Trades & Technology

A build-to-operate (BTO) company signed a contract to operate Alamosa County industrial wastewater treatment plants for the next 20 years. The contract will pay the company $2.5 million now and amounts increasing by $200,000 each year through year 20. At an interest rate of 10% per year, what is the present worth now? Solve using (a) tabulated factors, and (b) a spreadsheet.

What will be an ideal response?

Trades & Technology

Which of the following is not listed in the text as an advantage I-joists have over dimensional lumber for roof construction?

A) Stable pricing B) Environmentally sound C) Works with other trades D) Steeper roof surfaces

Trades & Technology

Rounds and fillets in multiviews always have lines projected onto the views that show the actual beginning and end of the round or fillet curves.

Answer the following statement true (T) or false (F)

Trades & Technology