ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 72P
To determine
To ascertain:The no. of years that the treated part last to be the preferred alternative.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A machine costs $20,000 and has a 5 years useful
life. At the end of 5 years it can be sold for $4000.
If the annual interest rate is 8% compounded
semiannually, what is the equivalent annual worth
(Aw) and the present worth (Pw) of the machine?
Your company has a 1,000,000.00 loan for a new security system it just bought. The annual payment is 88,827.433 and the interest rate is 8% per year for 30 years. Your company decides that it can afford to pay 100,000 per year. After how many payments (years) will the loan be paid off?
A man borrowed P100,000 with 20% interest promised to pay the amount annually for 10 years however after the 6th deposit was made, he is in the position to pay the remaining balance. What amount should he pay?
Chapter 9 Solutions
ENGR.ECONOMIC ANALYSIS
Ch. 9 - Prob. 2QTCCh. 9 - Prob. 3QTCCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - Prob. 8P
Ch. 9 - Prob. 9PCh. 9 - Prob. 10PCh. 9 - Prob. 11PCh. 9 - Prob. 12PCh. 9 - Prob. 13PCh. 9 - Prob. 14PCh. 9 - Prob. 15PCh. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 27PCh. 9 - Prob. 28PCh. 9 - Prob. 29PCh. 9 - Prob. 30PCh. 9 - Prob. 31PCh. 9 - Prob. 32PCh. 9 - Prob. 33PCh. 9 - Prob. 34PCh. 9 - Prob. 35PCh. 9 - Prob. 36PCh. 9 - Prob. 37PCh. 9 - Prob. 38PCh. 9 - Prob. 39PCh. 9 - Prob. 40PCh. 9 - Prob. 41PCh. 9 - Prob. 42PCh. 9 - Prob. 43PCh. 9 - Prob. 44PCh. 9 - Prob. 45PCh. 9 - Prob. 46PCh. 9 - Prob. 47PCh. 9 - Prob. 48PCh. 9 - Prob. 49PCh. 9 - Prob. 50PCh. 9 - Prob. 51PCh. 9 - Prob. 52PCh. 9 - Prob. 53PCh. 9 - Prob. 54PCh. 9 - Prob. 55PCh. 9 - Prob. 56PCh. 9 - Prob. 57PCh. 9 - Prob. 58PCh. 9 - Prob. 59PCh. 9 - Prob. 60PCh. 9 - Prob. 61PCh. 9 - Prob. 62PCh. 9 - Prob. 63PCh. 9 - Prob. 64PCh. 9 - Prob. 65PCh. 9 - Prob. 66PCh. 9 - Prob. 67PCh. 9 - Prob. 68PCh. 9 - Prob. 69PCh. 9 - Prob. 70PCh. 9 - Prob. 71PCh. 9 - Prob. 72PCh. 9 - Prob. 73PCh. 9 - Prob. 74PCh. 9 - Prob. 75PCh. 9 - Prob. 77PCh. 9 - Prob. 78PCh. 9 - Prob. 79PCh. 9 - Prob. 80PCh. 9 - Prob. 81PCh. 9 - Prob. 83PCh. 9 - Prob. 84PCh. 9 - Prob. 85PCh. 9 - Prob. 86PCh. 9 - Prob. 87PCh. 9 - Prob. 88P
Knowledge Booster
Similar questions
- It costs 100, 000 pesos at the end of each year to maintain a certain portion of a highway. If money is worth 10%, how much would it pay to spend immediately to reduce the annual cost to 40,000 pesos?arrow_forwardA car’s warranty is 3 years. Upon expiration, annual maintenance starts at $150 and then climbs $25 per year until the car is sold at the end of Year 7. Use a 10% interest rate and find the present worth of these expenses.arrow_forwardIn Europe people are experiencing negative interest rates. This means banks charge their customers for protecting the patron’s money. If 10,000 euros (European Union currency) is deposited in a “savings” account that is subject to a negative interest rate of 1% per year, how much money will the customer have in 5 years?arrow_forward
- In Europe people are experiencing negative interest rates. This means banks charge their customers for protecting the patron's money. If 17,000 euros (European Union currency) is deposited in a "savings" account that is subject to a negative interest rate of 2% per year, how much money will the customer have in 4 years? The customer will have euros in 4years. (Round to the nearest euro.)arrow_forwardThe manager of a canned-food processing plant is trying to decide between two different labelling machines. Machine A will have a first cost of $15,000, an annual operating cost of $2800, and a service life of 4 years. Machine B will cost $21000 to buy and have an annual operating cost of $900 during its 4-year life. At an interest rate of 9% per year, what are the present worth of the two machines?arrow_forwardIf I want to invest my money, how long will it take (in months) $6000 to earn $120 interest (simple) at 6%?arrow_forward
- The repair cost for an equipment starts at $80.00 at the end of the 1st year and increases at a rate of 6% every year. The useful life of the equipment is 5 years and it has no salvage value. If the interest rate is 8%, the present worth of the repair costs of this equipment is:arrow_forwardA material supplier won a 5-year contract to supply a construction company with all their building materials needs. The contract is expected to generate a first-year profit of $12,000. This annual profit is expected to increase by $6,000 each successive year for the rest of the contract period. The profits will be invested in an account earning an interest rate of 7%per year. (a) Assuming that the profits are deposited in the account at the end of each year, how much money will be in the account immediately after the last deposit is made? (b) What is the equivalent uniform annual deposit?arrow_forwardThe incomes for a business for 5 years are as follows: $8250, $12,600, $9,750, $11,400, and $14,500. If the value of money is 8%, what is the equivalent uniform annual benefit for the 5-year period?arrow_forward
- It costs P50,000 at the end of each year to maintain a section of a highway. If money is worth 10%, how much would it pay to spend immediately to reduce the annual cost to P10,000?arrow_forward1. For the cash flows shown below, find the present worth at time 0; assume i = P = ? 2000 1 1800 2 1600 3 1400 4 1200 1000 10% per year. Yeararrow_forwardHow much is the cuurent worth of annuity 1000 at discount rate of 10%arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education