Ford Motor Company was able to reduce by 78% the cost required for installing data acquisition instrumentation on test vehicles by using MTS - developed spinning wheel force transducers. The cost this year (i.e., end of year 1) is expected to be $3900 If the costs are expected to increase by $250 each year for the next 4 years, what is the equivalent annual worth of the costs (years 1 - 5) at an interest rate of 7% per year? The equivalent annual worth is $

Ahmad wants to borrow KD10,000 now from a bank to purchase a new car. He would like to .1 repay the loan in equal quarterly payments over 20 years. Find the unpaid balance after the 64th payment if the effective interest rate is 5% per quarter

engineering economy Volunteer Pharmaceuticals (VP) wants to set aside money in the R&D fund toseek supplemental drug applications of its two newly developed drugs. Instead ofputting away $450 million now, VP plans to set aside $A each year from year 1through 40. What should the value of A be if VP expects to earn 10% per yearfor the first 5 years and 3% per year for the remaining years?

A material supplier won a 7-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 $7,000 each successive year for the rest of the contract period. The profits will be invested in an account earning an interest rate of 12% 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? (a) The amount in the account immediately after the last deposit is $121068 (to the nearest dollar). (b) The equivalent uniform annual deposit is $12000 (to the nearest dollar)

The business plan for KnowIt, LLC, a start-up company that manufactures portable multigas detectors, showed equivalent annual cash flows of $400,000 for the first 5 years. If the cash flow in year 1 was $306,000 and the constant increase thereafter was $50,000 per year, what interest rate was used in the calculation?      The interest rate used in the calculation was

An employee earning P15,000 a month can only afford to buy a car requiring a down payment of P15,000 and monthly amortization of not more than 20% of his monthly salary. What would be the maximum cash value of a car he can purchase if the seller will agree to a down payment of P15,000 and the balance payable in 3 years at 20% per year payable on a monthly basis? The first payment will be due at the end of the first month.

A manufacturer of toilet flush valves wants to have ₱15,000,000 available 10 years from now so that a new product line can be initiated. If the company plans to deposit money each quarter from now, how much will it have to deposit each year if money is worth 7% compounded quarterly in order to have it available immediately at the end of 10 years? (a) Less than ₱182,000 (b) ₱182,500 (c) ₱191,300 (d) Over ₱262,000

A 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?

A person has 80,000 in a savings account that earns interest at 7% per year, compounded annually. If the person withdraws 12000 at the end of the year, after how many year will the savings be exhausted?

Mr. Doe borrowed $1000 from his bank at 8% per year, compounded annually. He can (i) repay the$1000 together with the interest at the end of 3 years, or (ii) pay the interest at the end of each year andrepay the $1000 at the end of 3 years. By how much is (ii) better than (i)?