Texas A&M University-Commerce Operations And Supply Chain Management Assignment Help - independent
Question - Each of the following parts is independent. (Ignore income taxes.)
1. Largo Freightlines plans to build a new garage in three years to have more space for repairing its
trucks. The garage will cost $400,000. What lump-sum amount should the company invest now to
have the $400,000 available at the end of the three-year period? Assume that the company can invest
money at:
a. Eight percent.
b. Twelve percent.
2. Martell Products, Inc., can purchase a new copier that will save $5,000 per year in copying costs.
The copier will last for six years and have no salvage value. What is the maximum purchase price that
Martell Products would be willing to pay for the copier if the company’s required rate of return is:
a. Ten percent?
b.
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