Problem #3 Solve for the following: 1) Present worth equivalence 2) Annual worth equivalence spread from years 1 to 10 3) Future worth equivalence at the end of year 5 4) Future worth equivalence at the end of year 10

engineering econ

answer with detailed solutions. (1)

7) For the cash flows shown in the diagram, find the future worth at end of year 10 at interest rate of 10% per year. 0 $1,000 ♥ 1 2 3 4 5 6 $2,000 7 8 9 10

2. Explaining short-run economic fluctuations A majority of economists believe that in the long run, real economic variables and nominal economic variables behave independently of one another. For example, an increase in the money supply, a no long-run effect on the quantity of goods and services the economy can produce, a and nominal variables is known as variable, will cause the price level, a AL AXIS However, in the short run, most economists believe that real and nominal variables are intertwined. Economists use the model of aggregate demand and aggregate supply to examine the economy's short-run fluctuations around the long-run output level. The following graph shows an incomplete short-run aggregate demand (AD) and aggregate supply (AS) diagram-it needs appropriate labels for the axes and curves. In the questions that follow you will identify some of the missing labels. AS variable, to increase but will have variable. The distinction between real variables ?

Q1. Find the present worth in year o for the cash flows shown. Let -10 of per year.

Self-tightening wedge grips are designed for tensile testing applications up to 1200 pounds.The cash flow associated with the product is shown below. Determine the cumulative cash flow after year 4. Year Revenue, $ Costs, $ 1 7,000 -14,000 The cumulative cash flow after year 4 is $ 2 17,000 -30,000 3 23,000 -22,000 4 19,000 -6,000

what is the answer in 2 decimal places

An initial capital of P15,000 was put up for a new business that will produce an annual income of P6000 for 5 years and that will have a salvage value of P2,500 at that time. Annual expenses for its operation (salaries and wages, insurance, taxes) and maintenance amounts to P3000. If money is worth 10% compounded annually, is this investment profitable or not, if so what is the difference in the present worth of the net income to his initial capital?

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