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 4, Problem 14P
a:
To determine
Calculate the future worth.
b:
To determine
Calculate the future worth through spreadsheet.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
You are a well-paid engineer with a well-established international corporation. In planning for your retirement, you are optimistic and expect to make an investment of 10,000 in year 1 and increase this amount by 10% each year. How long will it take for your account to have a future worth of 2,000,000 at a rate of return of 7% per year?
RKE & Associates is considering the purchase of a building it currently leases for 30,000 per year. The owner of the building put it up for sale at a price of 170,000, but because the firm has been a good tenant, the owner offered to sell it to RKE for a cash price of 160,000 now. If purchased now, how long will it be before the company recovers its investments at an interest rate of 15% per year?
A start-up company that makes robotic hardware for CIM (computer integrated manufacturing) systems borrowed 1 million to expand its packaging and shipping facility. The contract required the company to repay the lender through an innovative mechanism…
Assume that 25 years ago your dad invested $260,000, plus $32,000 in Year 2 through 5, and $49,000 per year from Year 6 through Year 25. The annual retirement
amount he can withdraw forever starting next year (Year 26), if the interest rate is 12% per year, is nearest to:
$1,320,000
$1,131,000
$2,005,500
$1,009,000
2.58 GKX Industries expects sales of its hydraulic seals (in inch and metric sizes) to increase
according to the cash flow sequence ($70 + 4k), where k is in years and cash flow is in
$1000.
(a) What is the amount of the cash flow in year 3?
(b) What is the future worth of the entire cash flow series in year 10 at i = 10% per
year?
Chapter 4 Solutions
Basics Of Engineering Economy
Ch. 4 - State two conditions under which the do-nothing...Ch. 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 - The costs associated with manufacturing a...
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 - Prob. 31PCh. 4 - Two mutually exclusive projects have the estimated...Ch. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - The manager of engineering at the 900-megawatt...Ch. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Three different plans were presented to the GAO by...Ch. 4 - The U.S. Army received two proposals for a turnkey...Ch. 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 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63APQCh. 4 - Prob. 64APQCh. 4 - Prob. 65APQCh. 4 - Prob. 66APQCh. 4 - Prob. 67APQCh. 4 - Prob. 68APQCh. 4 - Prob. 69APQCh. 4 - Prob. 70APQCh. 4 - Prob. 71APQ
Knowledge Booster
Similar questions
- Engineer John places 10% of his salary each year into a high-technology stock fund for his retirement. If his salary this year (end of year 1) is $160,000 and he expects his salary to increase by 3% each year, what will be the future worth of his retirement fund after 15 years, provided it earns 7% per year?arrow_forwardAn electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 = $2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of A2 = $3000 per year for the following 3 years. How would the cash flow diagram appear if i = 8.5% per year? Answer:arrow_forwardSMS Inc. wants to have enough money to purchase a new tractor-trailer in 5 years. If the unit will cost $500,000, how much should the company set aside each year (starting at the end of year 1 and each year until year 5) if the account earns a compound interest of 12% per year? (All the alternatives presented below were calculated using compound interest factor tables including all decimal places) $283,700 $138,705 $78,705 $61,615arrow_forward
- 0 The annual worth for years 1 through 8 of the cash flows shown is $30,000. What is the amount of x, the cash flow in year 3, at i = 10% per year? Solve using (a) tabulated factors, and (b) a spreadsheet. 1 2000 2 2200 3 4 2x 5 2800 6 3000 7 3200 8 3400arrow_forwardnts Skipped eBook Hint Turik Electronics manufactures microprocessor-based soft starters that use thyristors for controlled reduced voltage during starting and stopping. The company is planning a production-line expansion that will cost $1.2 million. If the company uses a minimum attractive rate of return of 16% per year, what is the equivalent annual cost in years 1 through 5 of the investment? (Enter your answer in dollars and not in millions of dollars.) The equivalent annual cost is $arrow_forwardA 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_forward
- It cost P66,327 at the end of each year to maintain a section of Kennon road in Baguio City. If money is worth 12.41%, how much would it pay to spend immediately to reduce the annual cost to P13,655?arrow_forwardPittsburgh Custom Products (PCP) purchased a new machine for ram-cambering large I beams. PCP expects to bend 90 beams at $1,800 per beam in each of the first 3 years, after which it expects to bend 100 beams per year at $2,600 per beam through year 9. If the company's minimum attractive rate of return is 17% per year, what is the present worth of the expected revenue? The present worth of the expected revenue is $arrow_forwardWhat is the Present Worth of $2,000 costs in year one, increaing by $500 per year for years 2 through 6. The interest rate is 12% per year. Note : You must show a cash flow diagram, factor- ntation equations, and a solution)arrow_forward
- Alex, an engineering graduate, who is planning for early retirement 20 years from now. He believes that he will need $1,000,000 in year 20. He already has $100,000 in his investment account. How much will he has to invest each year for of the following 20 years if the account grows at a rate of 10% per year?arrow_forwardA company wants to start a recapitalization pool for replacement of network servers. If the company invests $5000 at the end of year 1 and increases 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. Northrop Grumman will purchase a new automated 3D printer for a component it manufactures. The printer vendor requires no payment upon delivery of the printer, but requires annual payments of $5,000 that will start three years from now (in year 3) and continue through year 6. Northrop Grumman would like to set aside today an amount of money to cover the future annual payments. How much should they set aside now if the interest rate is 10%? Aerojet Rocketdyne is providing an annual maintenance contract to one of its customers. The contract will begin five years from now after the warranty period is over. The customer will pay $5,000 in year 5, with that amount increasing by 3% per year in years 6-10 (a…arrow_forwardFor the cash flows shown, you have been asked to calculate the present worth (in year 0) using i = 10% per year. Which of the following solutions is not correct? Year 0 1 2 3 4 5 6 Cash Flow, $ 200 200 200 200 300 300 300 (a) P = 200 + 200(P∕A,10%,3) + 300(P∕A,10%,3)(P∕F,10%,3) (b) P = 200(P∕A,10%,4) + 300(P∕A,10%,3) (P∕F,10%,3) (c) P = [200(F∕A,10%,7) + 100(F∕A,10%,3)] (P∕F,10%,6) (d) P = [200(P∕A,10%,7) + 100(P∕A,10%,3) (P∕F,10%,4)](F∕P,10%,1)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