ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question 3
You spend $2,000 in years 0 thru 5, $2,200 in year 6, $2,400 in year 7 and the amounts are increasing by
$200 per year until year 12. The interest rate is 12% per year.
(a) What is the total present worth in year 0?
(b) What is the equivalent annual worth (years 1-12)?
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Transcribed Image Text:Question 3 You spend $2,000 in years 0 thru 5, $2,200 in year 6, $2,400 in year 7 and the amounts are increasing by $200 per year until year 12. The interest rate is 12% per year. (a) What is the total present worth in year 0? (b) What is the equivalent annual worth (years 1-12)?
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