Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 3, Problem 76APQ
To determine

Usage of time period.

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Corrosion problems and manufacturing defects rendered a gasoline pipeline between El Paso, TX, and Phoenix, AZ, subject to longitudinal weld seam failures. The pressure was reduced to 80% of the design value. If the reduced pressure resulted in delivery of less product valued at $100,000 per month, what will be the value of the lost revenue after a 2-year period at an interest rate of 15% per year, compounded continuously?
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The cash flow associated with a strip mining operation is expected to be $200,000 in year 1, $180,000 in year 2, and amounts decreasing by $20,000 per year through 8. At an interest rate of 12% per year, what is the equivalent annual cash flow.

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Basics Of Engineering Economy

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