The tuition in a private university was $25,000 per academic year in 1999. If the inflation rate has been averaging at the rate of 3%, how much one should have invested in 1999 to send a kid to this private university in 2017. Assume the investment earned an 8% return.

An equipment was purchased two years ago financing for 5 years at 8% interest compounded monthly. The inflation rate for the past two years has been 3% per year and is expected to remain the same for the next 3 years. Compute the real interest rate for this loan.

A continuous improvement team has helped to save $20,000 for the company on a process that will not be changed for the next 10 years. If the team has spent $50,000 on the improvement project, the net present worth (NPW) of savings on this improvement project is $150,000 at a MARR of 5%.

If the uniform series capital recovery factor is 0.1359 and the sinking fund factor is 0.0759, then the interest rate is 6%.

An equipment purchased at a cost $80,000 by a local company is being depreciated using MACRS method as a 5-year property. At the end of four years, the management decided to sell the equipment for a modest price of $20,000. The company is in the 34% tax bracket. Compute the tax consequence on the sale of this equipment.

Tom started investing, as soon as he started his first job, at the rate of $400 per month as soon as get paid into a savings account that earns an interest of 1% per month. Which of the following expression may be used to determine the account value 10 years from now?

Determine the depletion charges using the percentage depletion method for the first year only for a coal mine. The applicable rate for the percentage depletion method is 10%. Cost to acquire mine rights = $150,000 Estimated mine size = 40,000 Tons Selling price = $80 per Ton Amount sold in year 1 = 2,000 Tons Operating cost in year 1 = $50,000

If the optimistic, most likely and pessimistic estimates of the life of an asset are 6, 8 and 10 respectively, then the estimates of the life is 8 years

If Sonja invested $10,000 in a good mutual fund that pays an average return of 10%, the investment will be worth $16,110 five years from now.

If Carter expects a guaranteed ROR to triple his investment in 9 years, the nominal interest rate that he got is 30%.