A person has 40 years to retirement. They plan on making quarterly deposits into a savings account at the end of the quarter. The savings account returns 8% compounded quarterly. The person wishes to have $600,000 in todays dollars available to fund their retirement. The inflation rate for the next 40 years is 6% / year. What is the inflation adjusted amount that will be needed in the savings account to fund retirement in 40 years?  What is the quarterly annuity payment required into the savings account?

The defender equipment has a remaining useful life of 2 yrs and a salvage value at the end of these two years of $12,000. The defender could be sold today for $30,000. The challenger cost $165,000, has a useful life of 8 years and a salvage value at the end of the 8 years of $5,000.  The challenger lowers operating costs by $30,000 vs the defender. MARR for this organization is 12% /year compounded annually. Solve for the best option using AE.

The defender equipment has a remaining useful life of 5 yrs and a salvage value at the end of these two years of $5,000.  The defender could be sold today for $10,000. The challenger cost $75,000, has a useful life of 5 years and zero salvage value at the end of the 8 years.  The challenger lowers operating costs by $30,000 vs the defender. MARR for this organization is 15% /year compounded annually.  Solve for the best option using AE.