Solve the following problems: 1. The offshore design group at Bechtel just purchased upgraded CAD software for $5000 now and annual payments of $500 per year for 6 years starting 3 years from now for annual up-grades. What is the present worth in year 0 of the payments if the interest rate is 8% per year? PT=$?? 1 N i=8% per year 3 4 5 6 7 8

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
100%
Please help me quickly I will vote your answer help them please
Solve the following problems:
1. The offshore design group at Bechtel just purchased upgraded CAD software for $5000
now and annual payments of $500 per year for 6 years starting 3 years from now for
annual up-grades. What is the present worth in year 0 of the payments if the interest
rate is 8% per year?
PT=$??
0
O
Po=$5000
1
A'=$?
2
2
i-8% per year
3
4 5
2. Recalibration of sensitive measuring devices costs $8000 per year. If the machine will be
recalibrated for each of 6 years starting 3 years after purchase, calculate the 8-year
equivalent uniform series at 16% per year (A¹).
A=$500
i=16% per year
3
4
5
6
6
A=$8000
7 8
-Years
7 8
-Years
Transcribed Image Text:Solve the following problems: 1. The offshore design group at Bechtel just purchased upgraded CAD software for $5000 now and annual payments of $500 per year for 6 years starting 3 years from now for annual up-grades. What is the present worth in year 0 of the payments if the interest rate is 8% per year? PT=$?? 0 O Po=$5000 1 A'=$? 2 2 i-8% per year 3 4 5 2. Recalibration of sensitive measuring devices costs $8000 per year. If the machine will be recalibrated for each of 6 years starting 3 years after purchase, calculate the 8-year equivalent uniform series at 16% per year (A¹). A=$500 i=16% per year 3 4 5 6 6 A=$8000 7 8 -Years 7 8 -Years
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Annual Cost
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education