Homework 10

Homework 10 - 5.2 per year compounded weekly How much will...

This preview shows page 1. Sign up to view the full content.

Homework 10 1. ACME Widgets has just completed its new factory in Toluca, Mexico. During their first month of operation, they expect to make 10,000 widgets. That amount is expected to rise by 1500 widgets per month until the plant reaches its full capacity during Month 12. If ACME makes a profit of \$35 per widget and their time value of money is 12% per year compounded monthly, what is the value of their profits at the end of the factory’s first 12 months of operation? 2. Tammy gets paid every Friday and puts \$100 from her paycheck into a savings account that pays
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 5.2% per year compounded weekly. How much will she have in her account at the end of six months? 3. Sheila gets paid every other Friday and puts \$200 from her paycheck into a savings account that pays 5.2% per year compounded weekly. How much will she have in her account at the end of six months? 4. What is the equivalent annual value (in Years 1-11) of the cash flows below if the interest rate is 7% per year?...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online