1. If a machine costs 125,000 and has a life of 7 years with a salvage value of 5% of the original cost, should ABC install it if its MARR is 10%. The machine is estimated to provide a benefit of $4,700 per month to the company with a monthly cot of 2500. Explain answer.... Show calculations using excel
2. What annual interest rate must be obtained to accumulate $31,645 in 12 years on an investment of $14,872 with quarterly compounding?
3. A coupon bond that pays interest of $59 annually has a par value of $1,000, matures in 5 years, and is selling today at a $75.00 discount from par value. The current yield on this bond is _________.