Engineering Economy
8th Edition
ISBN: 9780073523439
Author: Leland T Blank Professor Emeritus, Anthony Tarquin
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 32P
To determine
Calculate equivalent annual worth.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A manufacturer of prototyping equipment wants to have $3,000,000 available 10 years from now so that a new product line can be initiated. If the company plans to deposit money each year, starting 1 year from now, the equation that represents how much the company is required to deposit each year at 10% per year interest to have the $3,000,000 immediately after the last deposit is: (a) 3,000,000(A∕F,10%,10) (b) 3,000,000(A∕F,10%,11) (c) 3,000,000 + 3,000,000(A∕F,10%,10) (d) 3,000,000(A∕P,10%,10)
An electronic device is available that will reduce this year’s labor cost by$12543.The equipment is expected to last for eight years. If labor cost increase at an average rate of 7% per year at interest rate is 12% compounded bimonthly. What is the maximum amount that we could justify spending for the device?
Send handwritten solutions.
You found a report stating that the equivalent annual worth of chemical costs associated with a water treatment process were $125,000 per year for a 5-year period. The report stated that the cost in year 1 was $190,000 and the cost decreased by a uniform amount each year over that 5-year period. However, it did not say how much the decrease was each year. If the interest rate was 20% per year, the amount of the annual decrease, G, is closest to: (a) $27,358 (b) $31,136 (c) $33,093 (d) $39,622
Chapter 2 Solutions
Engineering Economy
Ch. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - How much money should a bank be willing to loan a...Ch. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - How much could BTU Oil & Gas Fracking afford to...
Ch. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Labco Scientific sells high-purity chemicals to...Ch. 2 - Labco Scientific sells high-purity chemicals to...Ch. 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 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - NMTeX Oil owns several gas wells in Carlsbad, NM....Ch. 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 - Prob. 54PCh. 2 - Prob. 55PCh. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Prob. 61ESCh. 2 - Prob. 62ESCh. 2 - Prob. 63ESCh. 2 - Prob. 64ESCh. 2 - Prob. 65ESCh. 2 - Prob. 66APQCh. 2 - Prob. 67APQCh. 2 - Prob. 68APQCh. 2 - Prob. 69APQCh. 2 - Prob. 70APQCh. 2 - Prob. 71APQCh. 2 - Prob. 72APQCh. 2 - Prob. 73APQCh. 2 - Prob. 74APQCh. 2 - Prob. 75APQCh. 2 - Prob. 76APQCh. 2 - Prob. 77APQCh. 2 - Prob. 78APQCh. 2 - Prob. 79APQCh. 2 - Prob. 80APQCh. 2 - Prob. 1CSCh. 2 - Prob. 2CSCh. 2 - Prob. 3CSCh. 2 - Prob. 4CSCh. 2 - Prob. 5CS
Knowledge Booster
Similar questions
- Health informatics is making use of monitoring devices, microelectronic mechanical systems, and wireless integrated microsystems (WIMS). Monitoring of patients, alerting health professionals when a patient needs attention, and even automatically releasing drugs as needed, are becoming possible through engineering. If the cost savings in a local healthcare center is estimated to be $20,000,000 during the 7th year from now, what investment today would be justified for just that one year's savings if the time value of money is 12% per year?arrow_forwardWhat is the present equivalent of P900,000 to be received in 15 years when the interest rate is 7% per year?arrow_forwardA contractor offers to purchase your old tractor for ETB10,000 but cannot pay you the money for 12 months. If you feel i=1% per month is a fair interest rate, what is the present worth to you today of the $10,000 if it is paid 12 months from nowarrow_forward
- By filling carbon nanotubes with miniscule wires made of iron and iron carbide, incredibly thin nanowires can be extruded by blasting the carbon nanotubes with an electron beam. If Gentech Technologies spends $12.7 million now in developing the process, how much must be received in licensing fees each year for the next 8 years (starting 1 year from now) to recover its investment at a 20% per year rate of return?arrow_forwardCalculate the equivalent future cost in year 10 for the following series of disbursements at an interest rate of 10% per year. Also, write a single-cell spreadsheet function that will determine the future worth. Year Disbursement, $ Year Disbursement, $ 0 5 4000 1 4000 6 5000 2 4000 7 5000 3 4000 8 5000 4 4000 9 5000arrow_forwardWhat is the present value (PV) of $100,000 received six years from now, assuming the interest rate is 8% per year?arrow_forward
- An engineer deposits $2,000 per month for four years at a rate of 24% per year, compounded semiannually. How much will he be able to withdraw 10 years after his last deposit ?arrow_forwardThe annual cost of a certain service is $41,000 at EOY I which decreases by 7.5% per year for a period of 12 years. If the interest rate is 7.5% per year, what is the present equivalent of the annual cost at the beginning of year 1?arrow_forwardIn an effort to save money for early retirement, an environmental engineering colleague plans to deposit $1200 per month, starting 1 month from now, into a fixed rate account that pays 8% per year, compounded semiannually. How much will be in the account at the end of 25 years?arrow_forward
- The future worth in year 10 of a decreasing geometric gradient series of cash flows was found to be $40000. If the interest rate was 10% per year and the annual rate of decrease was 8% per year, what was the cash flow amount in year 1? (use 2 decimal places after dot.)arrow_forwardIn an effort to save money for early retirement, an environmental engineering colleague plans to deposit $1,300 per month, starting one month from now, into a fixed rate account that pays 8% per year compounded semi-annually. How much will be in the account at the end of 23 years? At the end of 23 years, the account will be $arrow_forwardWhat is the Present Worth of $2,000 costs in year one, increasing by $500 per year for years 2 thru 6. The interest rate is 12% per year. (you must show a cash flow diagram, factor-notation equations, and a solution)arrow_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:PEARSON
Engineering 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 Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial 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