Business: 12.Transverse Crane Service will obtain a bonus at the end of a multi-year project if the job is completed on time. This bonus will amount to $100,000 or a bridge general maintenance project across the Hudson River. The company has the following investments and cash draws on the 9-year project: They invested $2,000,000 at the start of the project to cover expected costs. In year 2 they expect to withdraw $6,000,00. In year 3, they will receive a partial payment for $800,000. In year 5, they will

12.Transverse Crane Service will obtain a bonus

gianna61

29.04.2021

Solution :

Given : interest rate = 3%

= 0.03

Investment at the starting of the project = $2,000,000

Value of money at the end of year $2$ = $2000000 \times (1.03)^2 - 600000 = 1,521,800$

Value at money the end of year $3$ = $1521800 \times 1.03 + 800000 = 2,367,454$

Value at money the end of year $5$ = $2367454 \times (1.03)^2-900000=1,611,631.949$

Value at money the end of year $6$ = $1611631.949 \times 1.03 - 400000=1,259,980.91$

Value at money the end of year $8$ = $1259980.91 \times (1.03)^2 +1800000=3,136,713.74$

Value at money the end of year $9$ = $3136713.74 \times 1.03 + 100000=3,330,815.16$

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alwaysneedhelp84

01.08.2020

Wait, What??

omg whats happening to YT

Explanation:

I love YT to much, i don't want it to die :(

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