Aerotron electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. the system costs $230,000. it has an expected life of 7 years at which time its salvage value will be $7,500. operating and maintenance expenses are estimated to be $8,000 per year. if the filtration system is not purchased, aerotron electronics will have to pay bay city $20,000 per year for water purification. if the system is purchased, no water purification from bay city will be needed. aerotron electronics must borrow 1/2 of the purchase price, but they cannot start repaying the loan for 2 years. the bank has agreed to 3 equal annual payments, with the 1st payment due at the end of year 2. the loan interest rate is 8% compounded annually. aerotron electronics’ marr is 10% compounded annually.

what is the annual worth of this investment?

Explanation:

Annual worth: this will be the annuity payment equivalent to all the cashflow of the investment. Thus the PMT of the net present value

Cash Investment at F0: 230,000/2 = 115,000

present value of 7,500 salvage value:

Maturity  7,500.00

time   7 years

MARR: 10% =0.1

PV   3,848.69

Then, we need to calculate the present value of the loan discounted at 10%

half the investment is finance: 230,000 / 2 = 115,000

Then, this capitalize 2 year at 8% before the first payment:

Principal115,000.00

time2 year

MARR: 10% =0.08000

Amount134,136.00

Now we need to discount this loan at 10% which is our rate of return:

Maturity  134,136.00

time   2.00

MARR: 10% =0.1

PV   110,856.20

Finally: we add this values to get the resent worth:

115,000 +  110,856.20 - 3,848.69 = 222,007.51

Last step, we calculate the PMT of the present worth:

PV222,007.51

time7 years

MARR: 10% =0.1

C  $ 45,601.564

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

the answer is b. the events might happen and are based on crimes.