Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 5, Problem 7P
To determine

Calculate the present worth.

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A bond with a face value of $10,000 pays interest of 8​% per year. This bond will be redeemed at its face value at the end of ten years. How much should be paid now for this bond when the first interest payment is payable one year from now and a 9​% yield is​ desired?
Q4. RKE & Associates is considering the purchase of a building it currently leases for $30,000 per year. The owner of the building put it up for sale at a price of $170,000, but because the firm has been a good tenant, the owner offered to sell it to RKE for a cash price of $160,000 now. If purchased now, how long will it be before the company recovers its investment at an interest rate of 15% per year?
8 1 01:59:49 ! Required information You just deposited $9,500 in an investment account and will deposit $5000 more four years from now. Use tabulated factor values to determine how much will be in the account 14 years from now if the rate of return is 10% per year? 14 years from now, the account will have $
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