Business
16.03.2022 05:03
126
410
10
Solved by an expert

Atlas Transportation is considering installing temperature logger in all its refrigerated

Atlas Transportation is considering installing temperature logger in all its refrigerated trucks for monitoring temperatures during transit. If the systems will reduce insurance claims by $40,000 per year for 5 years how much should the company be willing to spend now if it uses an interest rate of 12% compounded quarterly
Show Answers
jessejames48
jessejames48
4,6(73 marks)

$144191.05

Explanation:

Solution

Recall that:

The insurance claim reduction is =$40,000

The time = 5 years

The interest rate = 5%

Now,

We find how much the company be willing to spend if it uses an interest rate of 12% compounded quarterly.

The present value is computed as follows:

The Present Value of the saving (PV) = 40000/(1+12%) + 40000/(1+12%)2 +40000/(1+12%)3 +40000/(1+12%)4 +40000/(1+12%)5

= $144191.05

Hence, the maximum amount the company should be freely spend is

= $144191.05

andrewcassity1
andrewcassity1
4,8(20 marks)

Explanation:

Ventajas de las tablas dinámicas de Excel:

Hacen que los informes sean flexibles y se adaptan a tus necesidades. Son una forma interactiva de resumir rápidamente grandes volúmenes de datos, haciendo mucho más fácil el proceso de análisis y permitiendo encontrar patrones o tendencias.

Popular Questions about the subject: Business

True or false: the aggressive driver typically except that collision causing...
Business
04.12.2020 02:14
What does the e in the personality type abreviations stand for...
Business
31.10.2021 22:52

New questions by subject

What tools can you use to monitor the wetlands over time and what types of...
Biology
20.05.2022 06:45
What is the image point of (-8, 7) after a translation right 5 units and...
Mathematics
02.03.2020 21:03
How did the Organic Act of 1890 promote the public school system in Oklahoma...
History
16.10.2021 14:08
What is the original story that started it all think of the root arch...
English
17.02.2022 03:05
Match the letters to the items they represent. Put the number in the box...
Computers and Technology
10.12.2020 14:43
Hola mi nombre es sasha estoy a punto de cumplir 13 años. Responde las siguientes...
Spanish
14.03.2023 00:54
Help me plz no one will help!?...
English
30.06.2022 04:21
Brainliest..... Please don t just suck points I will not mark brainliest...
Mathematics
01.04.2022 00:06
#
#
#
#
# #

We expand our knowledge with many expert answers