ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- What is the equivalent annual cost in years 1 through 8.00 of a contract that has a first cost of $78,000 in year 0 and annual costs of $16,000 in years 3 through 8.00? Use an interest rate of 12.00% per year. (Round the final answer to three decimal places.)arrow_forwardProblem 03.041 Shifted Gradients Nippon Steel's expenses for heating and cooling a large manufacturing facility are expected to increase according to an arithmetic gradient beginning in year 2. If the cost is $550,000 this year (year O) and will be $550,000 again in year 1, but then it is estimated to increase by $57,000 each year through year 12, what is the equivalent annual worth in years 1 to 12 of these energy costs at an interest rate of 14% per year? The equivalent annual worth is determined to be $arrow_forwardPlease no written by hand solution Assume that 25 years ago your dad invested $240,000, plus $31,000 in years 2 through 5, and $45,000 per year from year 6 on. Determine the annual retirement amount that he can withdraw forever starting next year (year 26), if the $45,000 annuity stopped at year 25. The interest rate being 12% per year. The annual retirement amount is determined to be $arrow_forward
- Please provide a clear and complete solution. Answer fast for I have 30 minutes left. Thank you very much.arrow_forwardSelf-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 -6,000arrow_forward! Required information Eight years ago, Ohio Valley Trucking purchased a large- capacity dump truck for $102,000 to provide short-haul earth-moving services. The company sold it today for $45,000. Operating and maintenance costs averaged $10,200 per year. A complete overhaul at the end of year 4 costs an extra $3600. Calculate the annual cost of the truck at i = 8% per year. The annual cost of the truck is $- per year.arrow_forward
- Please solve the problem and draw a diagram for the problem, Make sure you post pictures of your work instead of writing it. Please! Thank you for your help.arrow_forwardQuestion Number 5 You will deposit money into a bank account according to the following schedule: Today 4 year from today 6 years from today 8 years from today 12 years from today $182,000 $78,000 $136,000 $115,000 $94,000 After 12 years from today, what will be the purchasing power of the money in your bank account, expressed in today's dollars?. You bank pays interest at 7.000% per year, compounded annually. Inflation is expected to be 4.520% per year.arrow_forwardFind the accumulated amount of P3,967 invested 0.09% compound daily at for a period of 18 years.arrow_forward
- Required information Assume that 25 years ago your dad invested $320,000, plus $32,000 in years 2 through 5, and $49,000 per year from year 6 on. Determine the annual retirement amount that he can withdraw forever starting next year (year 26), if the $49,000 annuity stopped at year 25. The interest rate being 14% per year. The annual retirement amount is determined to be $arrow_forwardA company is considering establishing a new machine to automate a meatpacking process. The machine will save $59,350 in labor annually. The machine can be purchased for $271,296 today and will be used for 8 years. It has a salvage value of $11,071 at the end of its useful life. The new machine will require an annual maintenance cost of $9,594. The corporation has a minimum rate of return of 9.4%. Calculate the NPW.arrow_forwardThe city of Oak Ridge is considering the construction of a three kilometer (km) greenway walking trail. It will cost $1,000 per km to build the trail and $320 per km per year to maintain it over its 23-year life. If the city's MARR is 10% per year, what is the equivalent uniform annual cost of this project? Assume the trail has no residual value at the end of 23 years.arrow_forward
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