You will need to use the PV function in Excel or a financial calculator. In Excel the present value of a stream of monetary cash flows is given by -PV(rate, number of payments, payment amount) where rate is the interest rate. We enter the payment in Excel as a positive number. You can also compute the carbon cost per year and then discount those five values back to the present.

Q12

Let f(t) be the balance in a savings account at the end of t years and suppose y = f(t) satisfies the differential equation y' = 0.05y - 12,500. (a)Suppose that after one year the balance is $230,000. Is the balance increasing or decreasing at that time? At what rate is it increasing or decreasing at that time? (b)Write the differential equation in the form y' = k(y - M). (c)Describe the differential equation in words. %3D %3D (a) The balance is decreasing at a rate of $ - 1000 per year. (b) y' = .05(y - 230000) (c) Choose the correct answer below. A. The rate of change of the savings account balance is proportional to the balance at the end of t years and is always increasing. B. The rate of change of the savings account balance is proportional to the difference between the balance at the end of t years and $250,000. C. The rate of change of the savings account balance is proportional to the balance at the end of t years and is always decreasing. D. The differential equation gives the…

Subject: Engineering Economics An earth compactor costs Rs. 2,00,000 and has an economic life of 9 years. However, the purchaser needs it for only one project that will be completed in 3 years. At the end of the project, it can be sold for one-half its purchase price. What is the annual cost to the owner, if the required rate of return is 12 percent.