ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- For the net cash flow and cumulative cash flows shown, the value of x is nearest: (a) $−8,000 (b) $−16,000 (c) $16,000 (d) $41,000 Year 1 2 3 4 5 Net Cash Flow, $ +13,000 −29,000 −25,000 50,000 x CCF, $ +13,000 −16,000 −41,000 +9000 +1000arrow_forwardFind the What is the CC of initial cost $300,000, annual costs of S35,000, and recurring costs every 5 years of $75,000 at IR 12% per year. "Enter the value only without the currency"arrow_forwardRequired information A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows estimated. First cost, $ Equipment replacement cost in year 2, $ Annual operating cost, $/year Salvage value, $ Life, years -800,000 -300,000 -850,000 250,000 4 At an interest rate of 10% per year, what is the equivalent annual cost of the project? Find the AW value using tabulated factors. The equivalent annual cost of the project is $-[arrow_forward
- U.S. Census Bureau statistics show that the annual earnings for persons with a high school diploma are $35, 220 versus $57, 925 for someone with a bachelor’s degree. If the cost of attending college is assumed to be $35, 000 per year for 4 years and the forgone earnings during those years are assumed to be $35, 220 per year, what rate of return does earning a bachelor’s degree represent? Use a 25-year study period. In your analysis, you are expected to: (i) Use Excel to display the cash flow; (ii) Draw a Cash Flow Diagram; (iii) Use Excel to compute the internal rate of return of the CFD. (Hint: The investment in years 1 through 4 is the cost of college plus the foregone earnings, and the income in years 5 through 25 is the difference in income between a high school diploma and a bachelor’s degree.) Use excelarrow_forwardFor the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ АОС, $/year Salvage value, $ 3,000 Life, years B -15,000 -25,000 -1,600 -400 6,000 3 4 O (a) = -10000 (b) = -1800 (c) = 1200 %3D !3! O (a) = -10000 (b) = 13200 (c) = 4200 !3! %3! O (a) = -10000 (b) = 13200 (c) =6000 %3! %3D O (a) = -10000 (b) = 13200 (c) = 13200 %3Darrow_forwardWhat are the values of the engineering economy symbols P, F, A, i, and n in the following spreadsheet or TVM calculator functions? Use a “?” for the symbol that is to be determined.a. FV(8%,10,2000,-10000)b. PMT(12%,30,16000)c. PV(9%,15,1000,700)d. n(8.5,5000,-50000,20000)arrow_forward
- Pls help with below homework.arrow_forwardStreet lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost (investment cost) of $130,000. Annual maintenance expenses are expected to be$6,500for the first8years and$8,500 each year thereafter upto 25years. With an interest rate of 9% per year, what is the present worth cost of this project? Choose the closest answer below. A) $202,422 B $238,597 C) $249,468 D) $277,339arrow_forwardStreet lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost (investment cost) of $140,000.Annual maintenance expenses are expected to be $6,500 for the first 7 years and $9,000 each year thereafter up to 25 years. With an interest rate of 6%per year, what is the present worth cost of this project?arrow_forward
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