(1) A commercial real estate developer plans to borrow money to finance an upscale mall in an exclusive area of the city. The developer plans to get a loan that will be repaid with uniform payments of $475,000 beginning in year 2 and ending in year 16. How much will a bank be willing to loan at an interest rate of 14% per year?
The bank will be willing to loan the developer a sum of?
(2)Civil engineering consulting firms that provide services to outlying communities are vulnerable to a number of factors that affect the financial condition of the communities, such as bond issues, real estate developments, etc. A small consulting firm entered into a fixed-price contract with a spec home builder, resulting in a stable income of $315,000 per year in years 1 through 5. At the end of that time, a mild recession slowed the development, so the parties signed another contract for $160,000 per year for 4 more years. Determine the present worth of the two contracts at an interest rate of 10% per year.
The present worth of the two contracts is determined to be?
(3) What is the equivalent annual cost in years 1 through 10 of a contract that has a first cost of $78,000 in year 0 and annual costs of $19,000 in years 3 through 10? Use an interest rate of 10% per year.
The equivalent annual cost is determined to be?
(4) How much will Kingston Technologies have to pay each year in 11 equal payments, starting 2 years from now, to repay a $800,000 loan. The interest rate is 15% per year?
Kingston Technologies will have to pay $ each year to repay the loan ?
(5)Lifetime savings accounts, known as LSAs, allow people to invest after-tax money without being taxed on any of the gains. If an engineer invests $10,000 now and $10,000 each year for the next 11 years, how much will be in the account immediately after the last deposit, provided the account grows by 11% per year?
After the last deposit, the balance in the account will be?
(6)How much money would be accumulated 19 years from now from deposits of $13,000 per year for 5 consecutive years, starting 5 years from now, if the interest rate is 10% per year.
The amount that would be accumulated is determined to be ?
(7) A company that manufactures air-operated drain valve assemblies currently has $150,000 available to pay for plastic components over a 5-year period. If the company spent only $52,000 in year 1, what uniform annual amount can the company spend in each of the next 4 years to deplete the entire budget? Let i = 8% per year.
The uniform annual amount the company can spend is ?
(8) Attached
(9) The City of San Antonio is considering various options for providing water in its 50-year plan, including desalting. One brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 4 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 21 years, what is the present worth of the desalting option revenue at an interest rate of 7% per year?
The present worth of the desalting option revenue at an interest rate of 7% per year is determined to be ?