Hello pls do both the parts -I will rate your answer 1.a) A young engineer wishes to become a millionaire by the time he is sixty years old. He believes that by careful investment he can obtain a 15% rate of return. He plans to add a uniform sum of money to his investment program eachyear, beginning on his 20th birthday and continuing through his 59th birthday. How much money must the engineer set aside in this project each year? 1.b) An engineer has received two bids for an elevator to be installed in a new building. The bids, plus his evaluation of the elevators, are as follows: Bids Engineer's estimates Service life, in years Annual operating Salvage value cost, including repairs at end of service life Installed Alternatives cost Westinghome $45,00 10 $2700/yr $3000 Itis 54,000 15 2850/yr 4500 The engineer will make a present worth analysis using a 10% interest rate. Prepare the analysis and determine which bid should be accepted.
Hello pls do both the parts -I will rate your answer 1.a) A young engineer wishes to become a millionaire by the time he is sixty years old. He believes that by careful investment he can obtain a 15% rate of return. He plans to add a uniform sum of money to his investment program eachyear, beginning on his 20th birthday and continuing through his 59th birthday. How much money must the engineer set aside in this project each year? 1.b) An engineer has received two bids for an elevator to be installed in a new building. The bids, plus his evaluation of the elevators, are as follows: Bids Engineer's estimates Service life, in years Annual operating Salvage value cost, including repairs at end of service life Installed Alternatives cost Westinghome $45,00 10 $2700/yr $3000 Itis 54,000 15 2850/yr 4500 The engineer will make a present worth analysis using a 10% interest rate. Prepare the analysis and determine which bid should be accepted.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pls do both parts correctly I will rate your solution thanks ?
Transcribed Image Text:Hello pls do both the parts - I will rate your
answer
1.a)
A young engineer wishes to become a millionaire by the time he is sixty years old. He
believes that by careful investment he can obtain a 15% rate of return. He plans to add a uniform sum
of money to his investment program each year, beginning on his 20th birthday and continuing through
his 59th birthday. How much money must the engineer set aside in this project cach year?
1.b)
An engineer has received two bids for an elevator to be installed in a new building. The bids,
plus his evaluation of the elevators, are as follows:
Bids
Engineer's estimates
Service
life,
in years
Annual operating Salvage value
cost, including
repairs
Installed
at end of
service life
Alternatives
cost
Westinghome
$45,00
10
$2700/yr
$3000
Itis
54,000
15
2850/yr
4500
The engineer will make a present worth analysis using a 10% interest rate. Prepare the analysis
and determine which bid should be accepted.
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