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What was the cost of the machine

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Q1. Vaughn Manufacturing will invest $880000 today. The investment will earn 8% for 6 years, with no funds withdrawn. In 6 years, compute the amount in the investment fund?

Q2. A machine is purchased by making payments of $18500 at the beginning of each of the next five years. The interest rate was 14%. The future value of an ordinary annuity of 1 for five periods is 6.61010. The present value of an ordinary annuity of 1 for five periods is 3.43308. What was the cost of the machine?

Reference no: EM132562999

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