ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- number 1arrow_forward6.)show complete solution, final answer should be in two decimal only, i will automatically give upvote.arrow_forwardCompany B has a P5M loan for a new security system it just bought. The annual payment is P444,000 and the interest rate is 8% per year for 30 years. Your company decides that it can afford to pay P500,000 per year. After how many payments (years) will the loan be paid off? a. 18.78 yrs b. 15.67 yrs c. 20.44 yrs d. 25.76 yrsarrow_forward
- 4 QUESTION 9 A new production system for a factory is to be purchased and installed for $153,484. This system will save approximately 300,000 kWh of electric power each year for a 4year period. Assume the cost of electricity is $0.10 per kWh, and factory MARR is 10% per year, and the salvage value of the system will be $8,496 at year 4 Calcutate the FW of the above investment and insert the result below.arrow_forward1/ Q4. [. The present worth of the cash flows through year k, PWk for a defender (3-year remaining useful life) are shown in the table below. Assume the MARR is 10% per year. Based on this information, What is the economic life and the related minimum equivalent uniform annual cost, EUAC, for the defender? b. Compute marginal cost, show your calculations and fill the table below. Year(k) PWK a. 1 2 3 -$14,020 -$28,100 -$43,075 Total (marginal) cost EUACarrow_forwardPaul works for a government agency in southern California making $65,000 per year. He is now being transferred to a branch office in Tennessee. The salary reduction associated with this transfer is cost of is cost living in by this in pay Tennessee is 96. Over the next five years, what is the FW of Paul's extra income/improved life style (through the reduced cost of living) from having made this move? Paul's MARR is 10% per year ( that in Click the icon to view the interest and annuity table for discrete compounding when/-10% per year The FW of Paul's extra income/improved life style is $(Round to the nearest dollar)arrow_forward
- On August 6, 2021, Nike purchased new cash registers for their stores for $105,000 total. They will realize a $9,700 profit on the first Friday of every month ( Hint: You will need a calendar) starting on 9/3/2021 for an entire year (ending on July 1, 2022). What is the rate of return of this project? (X.X%)arrow_forwardplz solve it with explanation within 30-40 mins I'll give you multiple upvotearrow_forwardLittrell's Nursery needs a new irrigation system. System one will cost $145,000, have annual maintenance costs of $10,000, and need an overhaul at the end of year six costing $30,000. System two will have first year maintenance costs of $5,000 with increases of $500 each year thereafter. System two would not require an overhaul. Both systems will have no salvage value after 12 years. If Littrell's cost of capital is 4%, using annual worth analysis determine the maximum Littrell's should be willing to pay for system two.arrow_forward
- A transit system is considering buying 6 more buses to provide better service. It will cost $100,000 for buying a new bus and $15,000 per year for maintenance and operation for the following 8 years. If the city’s MARR is 8%, what is the equivalent uniform annual cost of this project? Assume the bus has no value at the end of 8 years.arrow_forward* 8arrow_forward
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