Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 110P
To determine
Calculate the present worth.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
An oil and gas producing company owns 40,000 acres of land in a
southeastern state. It operates 650 wells which produce 20,000 barrels
of oil per year and 1.2 million cubic feet of natural gas per year. The
revenue from the oil is $2,000,000 per year and for natural gas the
annual revenue is $560,000 per year. What bid should be made to
purchase this property if the potential buyer is hoping to make 17% per
year on his investment over a period of 9 years.
Your spendthrift cousin wants to buy a fancy watch for $425. Instead, you suggest that she buy an inexpensive watch for $25 and save the difference of $400. Your cousin agrees with your idea and invests $400 for 40 years in an account earning 9% interest per year. How much will she accumulate in this account after 40 years have passed?
A manufacturer invests $50,000 in a new production line that is expected to generate $70,000 in revenue over its useful life. If the effective interest rate on the investment is 12% per year, what is the net present value of the project?
Chapter 2 Solutions
Basics Of Engineering Economy
Ch. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10P
Ch. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Arctic and Antarctic regions are harsh...Ch. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - Prob. 32PCh. 2 - Prob. 33PCh. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 36PCh. 2 - Prob. 37PCh. 2 - Prob. 38PCh. 2 - Prob. 39PCh. 2 - Prob. 40PCh. 2 - Prob. 41PCh. 2 - Prob. 42PCh. 2 - Prob. 43PCh. 2 - Prob. 44PCh. 2 - Prob. 45PCh. 2 - Prob. 46PCh. 2 - Prob. 47PCh. 2 - Prob. 48PCh. 2 - Prob. 49PCh. 2 - Prob. 50PCh. 2 - Prob. 51PCh. 2 - Prob. 52PCh. 2 - Prob. 53PCh. 2 - Allen Bradley claims that its XM1Z1A and XM442...Ch. 2 - Prob. 55PCh. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Prob. 61PCh. 2 - Prob. 62PCh. 2 - Prob. 63PCh. 2 - Prob. 64PCh. 2 - Prob. 65PCh. 2 - Prob. 66PCh. 2 - Prob. 67PCh. 2 - Prob. 68PCh. 2 - The effort required to maintain a scanning...Ch. 2 - Prob. 70PCh. 2 - Prob. 71PCh. 2 - The present worth in year 10 of a decreasing...Ch. 2 - Prob. 73PCh. 2 - Prob. 74PCh. 2 - Prob. 75PCh. 2 - Prob. 76PCh. 2 - Prob. 77PCh. 2 - Prob. 78PCh. 2 - Prob. 79PCh. 2 - Prob. 80PCh. 2 - Prob. 81PCh. 2 - Prob. 82PCh. 2 - Prob. 83PCh. 2 - Prob. 84PCh. 2 - Prob. 85PCh. 2 - Prob. 86PCh. 2 - Prob. 87PCh. 2 - Prob. 88PCh. 2 - Prob. 89PCh. 2 - Prob. 90PCh. 2 - Prob. 91PCh. 2 - Prob. 92PCh. 2 - Prob. 93PCh. 2 - Prob. 94PCh. 2 - Prob. 95PCh. 2 - Prob. 96PCh. 2 - Prob. 97PCh. 2 - Prob. 98PCh. 2 - Prob. 99PCh. 2 - Prob. 100PCh. 2 - Prob. 101PCh. 2 - Prob. 102PCh. 2 - Prob. 103PCh. 2 - Prob. 104PCh. 2 - Prob. 105PCh. 2 - Prob. 106PCh. 2 - Prob. 107PCh. 2 - Union Pacific is considering the elimination of a...Ch. 2 - Prob. 109PCh. 2 - Prob. 110PCh. 2 - Prob. 111PCh. 2 - Prob. 112APQCh. 2 - Prob. 113APQCh. 2 - Prob. 114APQCh. 2 - Prob. 115APQCh. 2 - Prob. 116APQCh. 2 - Prob. 117APQCh. 2 - Prob. 118APQCh. 2 - Prob. 119APQCh. 2 - Prob. 120APQCh. 2 - Prob. 121APQCh. 2 - Prob. 122APQCh. 2 - Prob. 123APQCh. 2 - Prob. 124APQCh. 2 - Prob. 125APQCh. 2 - Prob. 126APQ
Knowledge Booster
Similar questions
- You are 20 years old. In five years, you will have access to a trust fund that will be worth $20,000 (at the time of access). If you leave that money in an investment account earning 8% per year until you are 60, how much will be in the account?arrow_forwardSpivey just won the Powerball Ilottery! The $25,000,000 jackpot will be paid in 10 annual installments of $2,500,000 each, with the first payment to be paid immediately. Spivey's opportunity cost of capital (interest rate) is 4% per year. What is the present equivalent of Spivey's lottery winnings at the time of the first payment?arrow_forwardThe required investment cost of a new, large shopping center is $51 million. The salvage value of the project is estimated to be $18 million (the value of the land). The project's life is 12 years and the annual operating expenses are estimated to be $16 million. The MARR for such projects is 15% per year. What must the minimum annual revenue be to make the shopping center a worthwhile venture? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. To make the shopping center a worthwhile venture, the minimum annual revenue must be $ million per year. (Round to three decimal places.) Reference Discrete Compounding; i=15% Single Payment Uniform Series Compound Amount Compound Sinking Fund Capital Recovery Factor Present Amount Present Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N FIP PIF FA PIA AIF AIP 1.1500 0.8696 1.0000…arrow_forward
- Jim Bob holds an engineering degree and is currently employed in an aerospace company in Dallas. Jim Bob has saved about $200,000 since he started working and plans to purchase a house three years from now. His local bank pays 5.25% per year on savings if the account holder keeps the funds a minimum of three year in the account. How much money will be available to Jim Bob should he decide to purchase a house with the money accumulated in this account for three years?arrow_forwardYou have received the proposal to invest $1,000,000 in exchange for receiving income of $75,000 at the end of the first month that would decrease 0.3% each month starting from the 2nd month. Expenses are estimated at $25,000 at each end of the month, starting from the 1st month. Assume that the proposal will last 5 years and that the minimum acceptable rate of return (m) is 1.5% per month. What does the Present Value criterion recommend? Show your work. If flow patterns are found (uniform, arithmetic, exponential), use factors.arrow_forwardBROAN Technologies is considering the purchase of an annual maintenance contract for its heating and air conditioning systems. Since this will be a new system, the company plans to begin the contract at the end of year 4 and continue through year 10. The cost of this contract is $4,600 per year and the company's minimum attractive rate of return is 10% per year. a. What will be the present worth of the contract? b. What will be the future worth of the contract? c. If the company wishes to pre-pay the contract with uniform payments in years one, two and three only, what will be the amount of each payment? d. What will be the equivalent uniform annual amount of the contract in years one through ten?arrow_forward
- What lump sum of money must be deposited into a bank account at the present time so that $500 per month can be withdrawn for five years, with the first withdrawal scheduled for six years from today? The interest rate is 3/4% per month.arrow_forwardSwitching to powder coating technology will reduce the emission of volatile organic carbons (VOCs) for a firm’s production process. The initial cost is $200,000 with annual costs of $50,000 and savings of $90,000 in the first year. Savings are projected to increase by $3000 annually after Year 1. The salvage value 10 years from now is projected to be $30,000. What rate of return will the firm make on this investment? can you please do it in excel and show me how to apply equation in excel. Prob 7-19 Year Costs Benefits +Salv Net 0 1 2 3 4 5 6 7 8 9 10arrow_forwardSonia’s house is worth $350,000. Homes have been appreciating at 5.7% per year for several years. If this trend continues, what will Sonia’s house be worth 15 years from now?arrow_forward
- An oil and gas producing company owns 49,000 acres of land in a southeastern state. It operates 650 wells which produce 19,000 barrels of oil per year and 1.5 million cubic feet of natural gas per year. The revenue from the oil is $1,900,000 per year and for natural gas the annual revenue is $583,000 per year. What bid should be made to purchase this property if the potential buyer is hoping to make 17% per year on his investment over a period of 9 years. Click the icon to view the interest and annuity table for discrete compounding when i = 17% per year. $ million or less should be offered for the property. (Round to two decimal places.)arrow_forwardAn oil and gas producing company owns 47,000 acres of land in a southeastern state. It operates 700 wells which produce 15,000 barrels of oil per year and 1.4 million cubic feet of natural gas per year. The revenue from the oil is $1,500,000 per year and for natural gas the annual revenue is $561,000 per year. What bid should be made to purchase this property if the potential buyer is hoping to make 14% per year on his investment over a period of 8 years. Click the icon to view the interest and annuity table for discrete compounding when i = 14% per year. $ million or less should be offered for the property. (Round to two decimal places.) Carrow_forwardProblem 8. Compute the future worth in year 10 at i = 12% per year for the cash flow shown below. 9 10 Yeararrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
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)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
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-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education