Determine the future value at the end

Assignment Help Business Economics

Reference no: EM131809457

A new plant can be constructed from the ground up, or an existing building can be purchased and retrofitted to suit the new plant requirements. Constructing a new plant will require a parcel of land costing $100K and initial design and construction costs of $175K. The remaining construction costs will be payable at $800K at the ends of years 1 and 2. Construction costs in year 3 decrease to $150K. If an existing building is retrofitted, the initial cost will be $1.25M. The remodeling will also cost $175K at the end of years 1 through 3. Determine the future value at the end of year 3 for each alternative at an interest rate of 15%. (Answer: new $2546K, renovate $2509K)

Reference no: EM131809457

Questions Cloud

Calculate the future worth : Calculate the future worth (FW) at 10% of a project that will save $25K per year for 20 years.

What would be the expected cost of goods sold for next month : Davis Corporation has a sales budget for next month of $600,000. What would be the expected cost of goods sold for next month

What is this worth when you are ready : You inherit $10K when you are 20. What is this worth when you are ready to retire at 65? Assume that the money can be invested at 7%, which is your interest

Determine whether this campaign is worth pursuing : What steps could the Union take to determine whether this campaign is worth pursuing?

Determine the future value at the end : Determine the future value at the end of year 3 for each alternative at an interest rate of 15%. (Answer: new $2546K, renovate $2509K)

Interpreting the relationship among the variables : The following table presents the scores of 15 states on three variables. Compute r and r2 for each combination of variables.

What is the current three month-forward rate : What is the current three month-forward rate? What would be the price of the insurance that we would effectively purchase in the latter case?

Smoking and deposits the money monthly : How much could he save by age 65 if he stops smoking and deposits the money monthly in a savings account?

Develop the content that is being portrayed or presented : There are many methods of dissemination, both internal and external that help reinforce, support and develop the content that is being portrayed or presented.

User Account

All Pages