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 22P
a:
To determine
Calculate the present worth.
b:
To determine
Calculate the present worth through spreadsheet.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
SMS 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
$61,615
We expect the cost of some equipment to rise by $1.75 every 3 months. First quarter costs will be $80, what is present worth of the cost for a 3-year time at MARR of 8% per year compounded quarterly?
Bull Built, a design/build engineering company that has always given year-end bonuses in the amount of $4,000 to each of its engineers, is having cash flow problems. The president said that although Bull Built couldn’t give bonuses this year, next year’s bonus would be large enough to make up for this year’s omission. If the interest rate is 10% per year, what is the equivalent bonus that engineers should receive next 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
- Parkhill, Smith, and Cooper, a consulting engineering firm, pays a bonus to each engineer at the end of the year based on the company’s profit for that year. If the company’s initial investment was $1.2 million, what rate of return has it made if each engineer’s bonus has been $3000 per year for the past 10 years? Assume the company has six engineers and that the bonus money represents 5% of the company’s profit.arrow_forwardApproximately, what is the value of (F) if A=300, n=5 years, and i= 5.5% per year?arrow_forwardCTX makes E-devices and planning to expand its production facility at a cost of 1.5 million one year from now. But a subcontractor who needs work has offered to do the job for 890,000 pesos if the company will do the expansion now instead of 1 year from now. How much of a discount is the company getting, if the interest rate is 15% per year?arrow_forward
- An engineer deposits $2,000 per month for four years at a rate of 24% per year, compounded semiannually. How much will he be able to withdraw 10 years after his last deposit ?arrow_forwardOver a 7-year period, the number of uninsured motorists in New Mexico dropped from 33% to 10% because an up-to-date computer database allowed the state to better police its requirements for car and truck liability insurance. Assuming the decrease occurred uniformly and compounded annually, what was the annual rate of the decrease?arrow_forwardHow many years would it take for an investment of $280,000 to accumulate to at least $425,000 at 15% per year interest?arrow_forward
- A Project Manager for a construction company deposited $125,000 every 3 months into an investment fund for two years. In addition to these quarterly deposits, she withdrew $40,000 on three occasions in Months 8, 10, and 18. How much does the Project Manager expect from the fund after the two-year period if she was quoted an interest rate of 10% per year compounded semi-annually. Assume that no inter-period interest is charged.arrow_forwardMr. Angelo borrowed $50,000.00 at a compound interest rate of 3% per month, with a promise to repay the commitment after 1 year. Currently, after seven months, he was approached by his creditor who proposed a discharge for an amount of $65,000.00. Will it be advantageous to accept the proposal?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_forward
- kate invested 15,500 pesos today at a simple interest rate of 15% per year. What will be the future worth of money after 15 months?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_forwardHow much money should you be willing to pay now for a guaranteed 6,000 pesos per year for 9 years starting next year, at a rate of return of 16% per year?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