Questions from Business Mathematics

Q: A firm can manufacture the same product with either of two machines

A firm can manufacture the same product with either of two machines. Machine C requires an initial investment of $55,000 and would earn a profit of $30,000 per year for three years. It would then be r...

Q: A proposed open-pit mine would require the investment of $

A proposed open-pit mine would require the investment of $3 million at the beginning of the first year and a further investment of $1 million at the end of the first year. Mining operations are expect...

Q: The development of a new product will require the expenditure of $

The development of a new product will require the expenditure of $175,000 at the beginning of each of the next two years. When the product reaches the market in Year 3, it is expected to increase the...

Q: Joan, Stella, and Sue have agreed to form a partnership

Joan, Stella, and Sue have agreed to form a partnership. For the original capital investment of $32,760, Sue agrees to contribute 20% more than Joan, and Joan agrees to contribute 20% more than Stella...

Q: Rainbow Aviation needs an additional plane for five years. It can

Rainbow Aviation needs an additional plane for five years. It can buy the plane for $360,000 using funds borrowed at 7.5% compounded monthly, and then sell the plane for an estimated $140,000 after fi...

Q: Huron Charters can purchase a sailboat for $100,000 down

Huron Charters can purchase a sailboat for $100,000 down and a $60,000 payment due in one year. The boat would generate additional annual operating profits of $24,000 for the first five years and $15,...

Q: A company’s board of directors has imposed an $800,000

A company’s board of directors has imposed an $800,000 limit on capital spending for the current year. Management has identified the following five projects with positive NPVs. Which...

Q: A company is considering two mutually exclusive investment projects. Each requires

A company is considering two mutually exclusive investment projects. Each requires an initial investment of $25,000. Project A will generate an annual profit of $6000 for eight Page 637years and have...

Q: A manufacturer’s sales rep can lease an automobile for five years at

A manufacturer’s sales rep can lease an automobile for five years at $385 per month payable at the beginning of each month, or purchase it for $22,500. He can obtain a loan at 9% compounded monthly to...

Q: Evaluate each of the following: a. (23 −

Evaluate each of the following: a. (23 − 3)2 − 20 ÷ (2 + 23) b. (2 × 32 − 23)2 ÷ (10 − 4 × 5) c. $ 213.85 ( 1 − 0.095 × 512 ) d. $ 2315 1 + 0.0825 × 77 365 e. $ 325.75 ( 1 + 0.105 4 ) 2 f. $ 710 ( 1...