Engineering Economy (16th Edition) - Standalone book
16th Edition
ISBN: 9780133439274
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 12P
To determine
Calculate the present value.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The annual operating costs at an iron ore processing plant have been $140,000 for the last 5 years.
The annual interest rate was 8% for the first 3 years and 9% in years 4 and 5.
What was the equivalent future amount (in year 5) of the operating costs?
$1,011,000
$1,070,500
$951,500
$892,100
$832,600
The annual worth for years 1 through 7 of the cash flows shown is $35,000. What is the amount of x, the cash flow in year 3, at i - 8% per year?
Write the basic set up equations, formulae used and all detailed calculations used to arrive your answer.
The value or x as per your calculation is_
i= 7% per year
0.
1
4
6.
7
Years
3000
4000
2x
7000
8000
9000
In Europe people are experiencing negative interest rates. This means banks charge their customers for protecting
the patron's money. If 17,000 euros (European Union currency) is deposited in a "savings" account that is subject to a
negative interest rate of 2% per year, how much money will the customer have in 4 years?
The customer will have euros in 4years. (Round to the nearest euro.)
Chapter 4 Solutions
Engineering Economy (16th Edition) - Standalone book
Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10P
Ch. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Twelve payments of 10,000 each are to be repaid...Ch. 4 - Prob. 32PCh. 4 - Automobiles of the future will most likely be...Ch. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - A geothermal heat pump can save up to 80% of the...Ch. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Maintenance expenses for a bridge on the Ohio...Ch. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63PCh. 4 - Prob. 64PCh. 4 - Prob. 65PCh. 4 - Prob. 66PCh. 4 - Prob. 67PCh. 4 - Prob. 68PCh. 4 - Prob. 69PCh. 4 - Prob. 70PCh. 4 - Prob. 71PCh. 4 - Prob. 72PCh. 4 - Prob. 73PCh. 4 - Prob. 74PCh. 4 - Prob. 75PCh. 4 - Prob. 76PCh. 4 - Prob. 77PCh. 4 - Prob. 78PCh. 4 - Prob. 79PCh. 4 - Prob. 80PCh. 4 - Prob. 81PCh. 4 - Prob. 82PCh. 4 - Prob. 83PCh. 4 - Prob. 84PCh. 4 - Prob. 85PCh. 4 - Prob. 86PCh. 4 - Prob. 87PCh. 4 - Prob. 88PCh. 4 - Prob. 89PCh. 4 - Prob. 90PCh. 4 - Prob. 91PCh. 4 - Prob. 92PCh. 4 - Prob. 93PCh. 4 - Prob. 94PCh. 4 - Prob. 95PCh. 4 - Prob. 96PCh. 4 - Prob. 97PCh. 4 - Prob. 98PCh. 4 - Prob. 99PCh. 4 - Prob. 100PCh. 4 - A large bank has increased its annual percentage...Ch. 4 - Prob. 102PCh. 4 - Prob. 103PCh. 4 - Prob. 104PCh. 4 - Prob. 105PCh. 4 - Prob. 106PCh. 4 - Prob. 107PCh. 4 - Prob. 108PCh. 4 - Prob. 109PCh. 4 - Prob. 110PCh. 4 - Prob. 111PCh. 4 - Prob. 112PCh. 4 - Prob. 113PCh. 4 - Prob. 114PCh. 4 - Prob. 115PCh. 4 - Prob. 116PCh. 4 - Prob. 117PCh. 4 - Prob. 118PCh. 4 - Prob. 119PCh. 4 - Prob. 120PCh. 4 - Prob. 121PCh. 4 - Prob. 122PCh. 4 - Prob. 123PCh. 4 - Prob. 124PCh. 4 - Prob. 125PCh. 4 - Prob. 126PCh. 4 - Analyze the truth of this statement, assuming you...Ch. 4 - Prob. 128PCh. 4 - Prob. 129SECh. 4 - Prob. 130SECh. 4 - Prob. 131SECh. 4 - Prob. 132SECh. 4 - Prob. 133CSCh. 4 - Prob. 134CSCh. 4 - Prob. 135CSCh. 4 - Prob. 136FECh. 4 - Prob. 137FECh. 4 - Prob. 138FECh. 4 - Prob. 139FECh. 4 - Prob. 140FECh. 4 - Prob. 141FECh. 4 - Prob. 142FECh. 4 - Prob. 143FECh. 4 - Prob. 144FECh. 4 - Prob. 145FECh. 4 - Prob. 146FECh. 4 - Prob. 147FECh. 4 - Prob. 148FECh. 4 - Prob. 149FECh. 4 - Prob. 150FECh. 4 - Prob. 151FE
Knowledge Booster
Similar questions
- A man borrowed P100,000 with 20% interest promised to pay the amount annually for 10 years however after the 6th deposit was made, he is in the position to pay the remaining balance. What amount should he pay?arrow_forwardThe repair cost for an equipment starts at $80.00 at the end of the 1st year and increases at a rate of 6% every year. The useful life of the equipment is 5 years and it has no salvage value. If the interest rate is 8%, the present worth of the repair costs of this equipment is:arrow_forwardA man invests 10,000 dollars now for the college education of his 2 yrs old son. If the fund earns 14% effective, how much will the son get each year starting from his 18th to the 22nd birthday?arrow_forward
- A new roof will cost $9,000. It will be installed in 22 years. If the interest rate is 9% per year, how much must be saved each year to accumulate $9,000 after 22 years?arrow_forwardA company plans to modernize its facilities in 9 years. They estimate saving $9,230 per month if they sell some of their machines now, and salvage them for $35,718. They also think 4 years from now their current $4,761 per month O & M costs will increase by 1.57% per month until they sell the rest of the machines to modernize. How much capital will they have available to modernize if they place all the savings into an account that pays them a nominal 10.94% rate, compounded 8 periods per year?arrow_forwardA machine costs $20,000 and has a 5 years useful life. At the end of 5 years it can be sold for $4000. If the annual interest rate is 8% compounded semiannually, what is the equivalent annual worth (Aw) and the present worth (Pw) of the machine?arrow_forward
- A wind turbine engineering firm has both the experience and an undeveloped plan for a new and more efficient design. A manufacturer has offered to pay the firm $2,000,000 for a working prototype, with complete documentation, 3 years from today. The turbine design firm wants to earn 22% per year on its money. How much can the turbine design firm afford to invest, expressed as if its entire investment were to take place today?arrow_forwardA man buys a corporate bond from a bond brokerage house for $925. The bond has a face value of $1000 and pays 4% of its face value each year. If the bond will be paid off at the end of 10 years, what rate return will the man receive?I know the answer is 4.97% I just need help with the process.arrow_forwardMandy would like to go on a backpacking trip through Europe after she graduates. She will graduate in 2 years and estimates the trip would cost $2,800. She deposits money into an account that earns 11% annually. How much would she need to set aside now to be able to pay for the backpacking trip? Click here to access the TVM Factor Table calculator. $arrow_forward
- A man wishes to withdraw an amount of P5,000 per month from the bank for 3 years. If interest is 1% monthly, what amount should he deposit now in the bank?arrow_forwardYour company has a $300,000 loan for a new security system it just bought. The annual payment is $ 28,500 and the interest rate is 7% per year for 20 years. Your company decides that it can afford to pay $40,000,000 per year. After how many payments (years) will the loan be paid off? Answer is Blank 1 years Note: do not use comma, no need to put the unit of measure and final answer must be in 2 decimal placesarrow_forwardA new roof will cost $15,000. It will be installed in 10 years. If the interest rate is 9% per year, how much must be saved each year to accumulate $15,000 after 10 years? If the interest rate is 9% per year, the amount to be saved annually 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