Problem
Assume that the computer in Problem 15.42 is financed with a 4-year loan that has constant total payments calculated at 11%. Find the EAC in year-0 dollars after taxes.
Problem 42
(Refer to Problem 13.17.) Find the EAC in year-0 dollars after taxes for a computer that costs $15,000 to purchase and $3500 per year to run with a 0% differential inflation rate and that has a salvage value of $1000 in year-0 dollars at the end of year 7. Inflation is expected to be 5% per year. The company's profit exceeds $20 million per year, and it is purchasing $850,000 worth of capital assets this year. The company uses an interest rate of 12%.
Problem 17
(Refer to Problem 13.17.) Find the EAC in year-0 dollars after taxes for a computer that costs $15,000 to purchase and $3500 per year to run with a 0% differential inflation rate and that has a salvage value of $1000 in year-0 dollars at the end of year 7. Inflation is expected to be 5% per year. The company's profit exceeds $20 million per year, and it is purchasing $850,000 worth of capital assets this year. The company uses an interest rate of 12%.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.