1. Calculate the annual worth (years 1 through 7) of Merchant Trucking Company's cash flow. Use an interest rate of 10% per year.
Year 0 1 2 3 4 5 6 7 Cash Flow, $ millions 450 -40 200 200 200 200 200 200.
2. The by-product department of Iowa Packing utilizes a cooker that has the cost stream shown. Determine the present worth in year 0 of the costs at an interest rate of 10% per year.
Year Cost ($1000)
0 850
1 300
2 400
3 400
4 400
5 500