Dawson Community College Acme Manufacturing Purchase Memo



Dawson Community College

Question Description

I uploaded for you everything you need. Make sure you follow the instructions and there is no PLAGIARISM.

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You have just been hired by a local manufacturing company named Acme Manufacturing. They are considering purchasing a new piece of equipment that costs $25,000. The seller has offered Acme Manufacturing the option of purchasing it at nothing down and $5,500 per year for 6 years. Your new supervisor wants to know the interest rate that Acme would end up paying. The formula relating current purchase cost, P, to annual payments, A, for n years, and interest rate i is: i · (1 + i)” A = P. (1 + i)" - 1 You are tasked with solving for the interest rate, i. The interest rate is typically communicated as a percent, but in this formula it is not a percent but a value between 0 – 1, i.e., 5% interest would be i = 0.05. You should use the broyden1() function in scipy.optimize to solve this nonlinear equation. Based on the interest rate you determine, would you recommend that Acme purchase the equipment on payments or just purchase it today (i.e., how does the interest rate compare with typical interest rates on loans today)? A figure is not required. Include your computer code in the appendix.
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Explanation & Answer

The program and the memo are ready. We still have enough time and of course I am ready to explain something and/or make some corrections.Also I realized that "pyplot" and "matplotlib" speaks about the same thing as pyplot is a part of matplotlib:) Also the task says "A figure is not required":)Memo is a Word file with program text at the end. Also there is zipped .py file with the program. Feel free to ask any questions ...

Obelf_F (8204)
Duke University

Great study resource, helped me a lot.