a software company that installs systems for inventory control usinf RFID technology spennt $600,000 per year for the past 3 ywears in developing its latest product. The company wants to recover its investment in 5 years beginning now. If the company signed a contract that will pay $250,000 now and amounts increasing by a uniform amountt each year through year 5, how much must the increase be each year, if the company uses an interest rate of 15% per year?
we are using Microsoft Excel to solve problems and im struggling
(Entries for Equipment Acquisitions) Jane Geddes Engineering Corporation purchased conveyor
equipment with a list price of $10,000. Presented below are three independent cases related to the equip- ment. (Round to the nearest dollar.)
(a) Geddes paid cash for the equipment 8 days after the purchase. The vendor âs credit terms are 2/10, n/30. Assume that equipment purchases are initially recorded gross.
(b) Geddes traded in equipment with a book value of $2,000 (initial cost $8,000), and paid $9,500 in cash one month after the purchase. The old equipment could have been sold for $400 at the date of trade. (The exchange has commercial substance.)
(c) Geddes gave the vendor a $10,800 zero-interest-bearing note for the equipment on the date of pur- chase. The note was due in one year and was paid on time. Assume that the effective-interest rate in the market was 9%.