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 3, Problem 40P
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
A company that manufactures air-operated drain valve assemblies currently has $110,000 available to pay for plastic components over
a 5-year period. If the company spent only $60,000 in year 1, what uniform annual amount can the company spend in each of the next
4 years to deplete the entire budget? Let i= 11% per year.
The uniform annual amount the company can spend is $ |
What is the present value of $8000 paid at the end of each of the next 16 years if the interest nate is 9% per year?
Instructions
Sun Oil Company is considering the installation of new flow meters in one of its
pipelines. If the company goes ahead with the project, it will spend $50,000 each year
for four years starting 2 years from now. What is the present of the investment at an
interest rate of 10% per year? Show the cash flow diagram.
Chapter 3 Solutions
Basics Of Engineering Economy
Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Convert an interest rate of 1.5% per month into a...Ch. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10P
Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - Prob. 31PCh. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39PCh. 3 - Prob. 40PCh. 3 - Prob. 41PCh. 3 - Prob. 42PCh. 3 - Erbitux is a colorectal cancer treatment drug that...Ch. 3 - Prob. 44PCh. 3 - Prob. 45PCh. 3 - Prob. 46PCh. 3 - Prob. 47PCh. 3 - Prob. 48PCh. 3 - Prob. 49PCh. 3 - Prob. 50PCh. 3 - Prob. 51PCh. 3 - Prob. 52PCh. 3 - Prob. 53PCh. 3 - Prob. 54PCh. 3 - Prob. 55PCh. 3 - Prob. 56PCh. 3 - Prob. 57PCh. 3 - Prob. 58PCh. 3 - The initial cost of a pulverized coal cyclone...Ch. 3 - Prob. 60PCh. 3 - Prob. 61PCh. 3 - Prob. 62PCh. 3 - Prob. 63PCh. 3 - Prob. 64PCh. 3 - Prob. 65PCh. 3 - Prob. 66PCh. 3 - Prob. 67PCh. 3 - Prob. 68APQCh. 3 - Prob. 69APQCh. 3 - Prob. 70APQCh. 3 - Prob. 71APQCh. 3 - Prob. 72APQCh. 3 - Prob. 73APQCh. 3 - Prob. 74APQCh. 3 - Prob. 75APQCh. 3 - Prob. 76APQ
Knowledge Booster
Similar questions
- The optical products division of LG planning a $3 million building expansion for manufacturing its powerful Lumix DMC digital zoom camera. if the company uses an interest rate of 10% per year, compounded quarterly for all new investments, what is the uniform amount per quarter the company must make in order to recover its investment in 4 years?arrow_forwardYou 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) $39,622arrow_forwardA friend tells you she has saved for 5 years and has a present sum of $15,000 , which earned at the rate of 8% per year compounded quarterly Determine the equivalent amount she had to start with 5 years ago.arrow_forward
- Company A plans to set aside $150,000 now for possibly replacing its large synchronous refiner motors in the future. If the replacement is expected to take place in 3.5 years, how much will the company have in its investment set-aside account? Assume the rate of return is 10% per year compounded quarterly.arrow_forwardSouthwestern Moving and Storage wants to have enough money to purchase a new tractor-trailer in 3 years. If the unit will cost $250,000, how much should the company set aside each year provided the account earns 9% per year?arrow_forwardWhat year end payment is equivalent to the monthly payments that would be paid on a $2,000 loan that must be repaid in one year at an interest rate of 1% per week?arrow_forward
- Calculate the present worth of 10 uniform payments of $8000 that begin 1 year from now at an interest rate of 10% per year.arrow_forwarda cash flow estimated to be $4000 at the end of year 1. If the cash flows are expected to increase by $1000 each year for the following 4 years, what is the equivalent annual worth of the cost (years 1-5) at an interest rate of 10% per year compounded annually?arrow_forwardCovido deposits $750 in a savings account at the beginning of each year, starting now, for the next 10 years. If the bank pays 7% per year, compounded annually, how much money will Covido have accumulated by the end of the 10th year?arrow_forward
- A company which manufactures automobile wiring harnesses has budgeted 10,000,000 now to pay for a certain plastic part over the next 5 years. If the company expects to spend 2,000,000 in year 1, how much of an increase per year is the company expecting in the cost of this part? Assume the 10,000,000 is in an account earning 12% per year interest.arrow_forwardWhat is the future equivalent of $10000 invested for 4 1/4 years at 8% simple interest per year?arrow_forwardIf you borrow $24,000 now at an interest rate of 10% per year and promise to repay the loan with payments of $3695 per year starting 1 year from now. The number of payments you have to make 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: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