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 61P
To determine
Calculate the annual value.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Assume that 25 years ago your dad invested $300,000, plus $34,000 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 10% per year.
The annual retirement amount is determined to be $
A small company heats its building and will spend $9,592 in year 1 on natural gas for this purpose. Cost increases of
natural gas are expected to be 9% per year starting year 2. Their maintenance on the gas furnace is going to be
$408.25 in the first year and this expense is expected to increase by 15% per year starting year 2. If the planning
horizon is 15 years, what is the total annual equivalent expense for operating and maintaining the furnace? The interest
rate is 18% per year.
(Round to nearest dollar)
(a) The total present worth of operating and maintaining the furnace is $
(b) The total annual equivalent expense for operating and maintaining the furnace is $
(Round to nearest dollar)
You have graduated and begun work as an engineer. Your plan is to save money for the next
three years to purchase a new vehicle. Based on your salary and living expenses, you plan to
deposit $2,500 in an investment account at the end of your first year of work, $4,000 at the
end of the second year, and $5,500 at the end of the third year. If the account earns interest at
6% per year, compounded annually, how much money will be available for your vehicle
purchase at the end of the third year?
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
- A supermarket is planning on piloting a self-checkout system in one of its stores. It estimates that this requires an investment of about $500,000 to modify existing checkout lanes into self-checkout lanes. It also estimates that it will save $150,000 yearly in employee salaries by automating the checkout process. If the supermarket's MARR is at 2% per year compounded annually, determine the Conventional- payback period (in years) for this pilot.arrow_forwardFor a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is P1,020 and the interest rate is 10% per year, find its FW. ANSWER: Blank 1 Blank 1 Add your answerarrow_forwardQuestion 5 Costs for maintenance of buildings at an industrial complex are expected to be $1,000 in year three, $1,200 in year four and amounts increasing by $200 per year thereafter through year nine. At an interest rate of 10% per year, what is the present worth of the cash flow? Question 6 You wish to make an investment of $3,000 today, which will become $5,000 at an interest rate if 12% . How many years will it take? Please don't handwriting solutionarrow_forward
- A deposit is made at t=0 into an investment account. Annual withdrawals are taken out over over a 10-year period with each successive withdrawal $175 greater than the previous withdrawal and at the end of year 10 the account is depleted. The amount withdrawn at the end of year 1 was $1582. What was the initial investment amount? Use a TVOM intrest rate of 8% per year, compounded annually. (ANS=$15,161)arrow_forward10 01:51:26 A small northern California consulting firm wants to start a recapitalization pool for replacement of network servers. If the company invests $6,000 at the end of year 1 but decreases the amount invested by 5% each year, how much will be in the account 5 years from now? Interest is earned at a rate of 8% per year. Five years from now, the account will have $arrow_forwardYou have a strict linear gradient series, with the amount of +537 Euros that is starting with the first cash flow in the gradient in the second year and continuing on until year seven. There is also a single cash flow of +815 Euros at the end of the first year. Your interest rate is 9.5% per year compounded semiannually. What is the Annual Equivalent Worth of that series of cash flows (over seven years and given in Euros)?arrow_forward
- You need to purchase new tires for the SUV that was willed to you by your favorite aunt. The all-season light truck tires cost $94 each and are expected to last 30,000 miles. The premium brand on-off-road light truck tires cost $145 each. Assuming you drive 10,000 miles per year, how many years will the premium tires have to last for them to be as economically attractive as the all-season tires at an interest rate of 10% per year? Use factors and a spreadsheet function to find the breakeven point. The premium tires will have to last for NPERDO%-94.145) O 5.3 years, and the spreadsheet function to find the breakeven point isarrow_forwardA large automobile manufacturer has developed a continuous variable transmission (CVT) that provides smooth shifting and enhances fuel efficiency by 2 mpg of gasoline. The extra cost of a CVT is $800 on the sticker price of a new car. For a particular model averaging 28 miles per gallon with the CVT, what is the cost of gasoline (dollars per gallon) that makes this option affordable when the buyer’s interest rate is 10% per year? The car will be driven 100,000 miles uniformly over an eight-year period.arrow_forward. Austin Utilities is planning to install solar panels to provide some of the electricity for its groundwater desalting plant. The project would be done in two phases. The first phase will cost $4 million in year 1 and $5 million in year 2. This investment will result in energy savings (phase 2) of $540,000 in year 3, $546,000 in year 4, and amounts increasing by $6000 each year through year 10. Let i= 10% per year. (a) What is the future worth of the savings? (b) Is the cost of the solar project justified by the savings?arrow_forward
- A 20-year-old student decided to set aside $100 on his 21st birthday for investment. Each subsequent year through his 55th birthday, he plans to increase the investment on a $100 arithmetic gradient. He will not set aside additional money after his 55th birthday. If the student can achieve an 8% rate of return, what is the future worth of the investments on his 65th birthday?arrow_forwardFor a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is P1,020 and the interest rate is 10% per year, find its PW. ANSWER: Blank 1arrow_forwardAt 20 years old, Josh is an avid saver. He wants to put an equal amount each year from age 21 to 50 (30 years) such that starting at age 65 he can make a guaranteed annual withdrawal of $20,000 forever without touching the corpus, which will be the inheritance money for his family. He will make no deposits during the years of age 51 through 65. At a conservative return of 6.5% per year for all the years, what amount must he invest each year from age 21 through 50? The amount that must be invested each year is $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