The XYZ Company loaned some money to one of its vendors so the vendor could upgrade its supply chain. In return, the vendor has agreed to pay XYZ $58526 a year, with the first payment occurring at the end of year 6.The vendor will make a total of 15 payments to XYZ (one per year). What is the annual worth of this loan? Use a MARR of 8% to make the calculation. Hint: Count the years carefully. Calculate the annual worth for the entire cash flow (from year O to the year of the last payment).
The XYZ Company loaned some money to one of its vendors so the vendor
The XYZ Company loaned some money to one of its vendors so the vendor could upgrade its supply chain. In return, the vendor has agreed to pay XYZ $58526 a year, with the first payment occurring at the end of year 6.The vendor will make a total of 15 payments to XYZ (one per year). What is the annual worth of this loan? Use a MARR of 8% to make the calculation. Hint: Count the years carefully. Calculate the annual worth for the entire cash flow (from year O to the year of the last payment).
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