How much should he put in budget today for maintenance costs

Assignment Help Financial Management

Reference no: EM131573692

1) You deposit $285 at the end of each month into an account that pays a nominal annual rate of 5% compounded monthly. How much will you have in the account at the end of 17 years?

Round your answer. Do not use a dollar sign ("$"), any commas (",") or a decimal point (".").

2) Professor Xavier is creating a budget for his recently awarded 10-year research grant. His research requires machinery that has an initial cost of $38662. He will need to pay for maintenance on the machinery beginning at the end of year 4. He estimates the first year of maintenance will cost $4571, with the maintenance costs increasing by $557 per year each subsequent year. How much should he put in the budget today for maintenance costs? Assume he will pay maintenance until the end of the research grant. He is using a MARR of 7%.

Round your answer. Do not use a dollar sign ("$"), any commas (","), or a decimal point (".").

Reference no: EM131573692

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