You are comparing two investment options that each pay 6 percent interest, compounded annually. both options will provide you with $12,000 of income. option a pays $2,000 the first year followed by two annual payments of $5,000 each. option b pays three annual payments of $4,000 each. which one of the following statements is correct given these two investment options? assume a positive discount rate. both options are of equal value since they both provide $12,000 of income. a) option a has the higher future value at the end of year three. b) option b has a higher present value at time zero. c) option b is a perpetuity. d) option a is an annuity.

Find the interest rate for a $4000 deposit accumulating to $5234.58, compounded quarterly for 9 years

Electronics assembly inc. is a contract manufacturer that assembles consumer electronics for a number of companies. currently, the operations manager is assessing the capacity requirements as input into a bid for a job to assemble cell phones for a major global company. the company would assemble three models of cell phones in the same assembly cell. setup time between the phones is negligible. electronics assembly inc. operates two 8-hour shifts for 275 days per year. cell phone demand forecast (phones/year) processing time (minutes/phone) mars 47,000 19.8 saturn 35,000 20.7 neptune 7,500 16.2 a. calculate total capacity required by line. b. determine the total operating time available. c. calculate the total number of assembly cells. (round up your answer to the next whole number.)

You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. the energy efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. the standard model has features similar to the energy efficient model but provides no future saving in electricity costs. it is priced at only $500. assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase