Finance production of handheld electronic brain

Assignment Help Business Economics

Reference no: EM13859483

Apple Computer wants to have $2.1 billion available 5 years from now to finance production of a handheld “electronic brain” that, based on your behavior, will learn how to control nearly all the electronic devices in your home, such as the thermostat, coffee pot, TV, and sprinkler system. The company expects to set aside uniformly increasing amounts of money each year to meet its goal. If the amount set aside at the end of year 1 is $50 million, how much will the constant increase G have to be each year? Assume the investment account grows at a rate of 18% per year.

Reference no: EM13859483

Questions Cloud

What is the yield to the investor who holds the bonds : A U.S. government bond matures in 10 years. Its quoted price is now 96.4, which means the buyer will pay $96.40 per $100 of the bond’s face value. The bond pays 5% interest on its face value each year. If $10,000 (the face value) worth of these bonds..

Induced-draft fan is needed for upgraded industrial process : A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8,760 hours per year.

Considering eliminating or reducing the surcharges : From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $14 million in withdrawals from other banks’ ATM machines. Estimates suggest t..

Determine present worth of geometric gradient series : Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The interest rate is 10% per year

Finance production of handheld electronic brain : Apple Computer wants to have $2.1 billion available 5 years from now to finance production of a handheld “electronic brain” that, based on your behavior, will learn how to control nearly all the electronic devices in your home, such as the thermostat..

New actuator element technology enables engineers : New actuator element technology enables engineers to simulate complex computer-controlled movements in any direction. If the technology results in cost savings in the design of amusement park rides, what is the future worth in year 5 of savings of $7..

Manufactures high sensitivity mini accelerometers : Precision Instruments, Inc. manufactures high sensitivity mini accelerometers designed for modal analysis testing. The company borrowed $10,000,000 with the understanding that it would make a $2,000,000 payment at the end of year 1 and then make equa..

Manufactures addressable actuators : Bessimer Electronics manufactures addressable actuators in one of its Maquiladora plants in Mexico. The company believes that by investing $24,000 each year in years 1, 2, and 3, it will avoid spending $87,360 in year 3. If the company does make the ..

Outlasting gate-plug-ball and even satellite coated valve : Red Valve Co. of Carnegie, Pennsylvania, makes a control pinch valve that provides accurate, repeatable control of abrasive and corrosive slurries, outlasting gate, plug, ball, and even satellite coated valves. How much can the company afford to spen..

User Account

All Pages