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 47P
To determine
Calculate the capitalized cost.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
ENGINEERING ECONOMICS
Construct a cash flow diagram that represents the amount of money that will be accumulated in 15 years from an investment of $40,000 now at an interest rate of 8% per year.
The annual worth for years 1 through infinity of $50,000 now, $10,000 per year in
years 1 through 15, and $20,000 per year in years 21 through infinity at 10%/year is
closest to
Between $15,400-$15,800
Between $15,800-$16,200
Between $16,200-$16,600
Higher than $16,600
A $10,000 loan amortized over 5 years at an interest rate of 10% per year requires payments of $2638 to completely remove the loan when interest is charged on the unrecovered balance of the principal. If interest is charged on the original principal instead of the unrecovered balance, what is the loan balance after 5 years, provided the same $2638 payments are made each 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
- Watkins Action Solutions ordered $7 million worth of seamless tubes for manufacturing their high performance and precision linear motion products. If their annual operating costs are $860,000 per year, how much annual revenue is required over a 3-year planning period to recover the initial investment and operating costs at the company's MARR of 15% per year?arrow_forwardA mechanical consulting company is examining its cash flow requirements for the next 10 years. The company expects to replace office machines and computer equipment at various times over the 10-year planning period. Specifically, the company expects to spend $5000 2 years from now, $5000 6 years from now, and $7000 8 years from now. At an interest rate of 13% per year, determine: a) The present worth of the planned expenditure for only the $5000 in year 2 is $ Leave your answer as a positive value and to the nearest $100 dollar. b) The net present worth of all planned expenditures is $ Leave your answer as a positive value and to the nearest $100 dollar.arrow_forwardA company that utilizes carbon fiber 3-D printing wants to have money available 2 years from now to add new equipment. The company currently has $650,000 in a capital account and it plans to deposit $200,000 now and another $200,000 one year from now. The total amount available in 2 years, provided it returns a compounded rate of 15% per year, is closest to: (a) $1,354,100 (b) $1,324,100 (c) $1,125,125 (d ) $1,050,000arrow_forward
- Videotech specializes in online security software development. It wants to have $65 million available in 3 years to pay stock dividends. How much money must the company set aside now in an account that earns interest at a rate of 12% per year, compounded quarterly? Solve using (a) tabulated factors, and (b) a single-cell spreadsheet function.arrow_forwardThe State of Chiapas, Mexico, decided to fund a program for improving reading skills in elementary school students. The first cost is $375,000 now and an update amount of $180,000 every 5 years forever Determine the perpetual equivalent annual cost at an interest rate of 11% per year. The perpetual equivalent annual cost is determined to be -$arrow_forwardThe State of Chiapas, Mexico, decided to fund a program for literacy. The first cost of $220,000 now and an updated budget of $65,000 every 7 years forever is requested. Determine the perpetual equivalent annual cost at an interest rate of 10% per year. The perpetual equivalent annual cost is $-arrow_forward
- A municipal bond with a face value of $10,000 was issued today with an interest rate of 6% per year payable semiannually. The bond matures 20 years from now. If an investor paid $9,000 for the bond and holds it to maturity, all of the following equations will yield the correct semiannual rate of return except: (a) 0 = −9000 + 300(P/A,i*,40) + 10,000(P/F,i*,40) (b) 0 = −9000(F/P,i*,40) + 300(F/A,i*,40) + 10,000 (c) 0 = −9000(A/P,i*,40) + 300 + 10,000(A/F,i*,40) (d) 0 = −9000 + 600(P/A,i*,40) + 10,000(P/F,i*,40)arrow_forwardLas Cruces' Virgin Galactic is considering two materials for certain parts in a reusable space vehicle: carbon fiber reinforced plastic (CFRP) and fiber reinforced ceramic (FRC). The costs are shown below. Which should be selected on the basis of a present worth comparison if MARR = 10% per year? (a) Solve using tabulated factors. (b) (Spreadsheet exercises) Solve using single-cell functions. (c) Using your spreadsheet functions, will the selection change if the estimated life of the CFRP material is 4, rather than 2, years? Material CFRP First cost, $ Maintenance cost, $/year -29,000 Salvage value, $ 2,000 Life, years FRC -205,000 -235,000 -27,000 20,000 2 4arrow_forwardIf a manufacturer of electronic devices invests $650,000 in equipment for making compact piezoelectric accelerometers for general purpose vibration measurement, estimate the rate of return from revenue of $225,000 per year for 10 years and $70,000 in salvage value from the used equipment sale in year 10. Solve by (a) factors, and (b) spreadsheet function.arrow_forward
- Valley Rendering, Inc. is considering purchasing a new flotation system for grease recovery. The company can finance a $150,000 system at 5% per year compound interest or 5.5% per year simple interest. If the total amount owed is due in a single payment at the end of 3 years, (a) which interest rate should the company select, and (b) how much is the difference in interest between the two schemes?arrow_forwardNorthwest Iron and Steel is considering getting involved in electronic commerce. A modest e-commerce package is available for $30,000. The company wants to recover the cost in 2 years. Find the equivalent amount of new revenue that must be realized every 6 months at an interest rate of 3% per quarter using (a) factor formula, and (b) a single-cell spreadsheet function that includes an EFFECT function.arrow_forwardA small construction company has $100,000 set aside in a capital improvement fund to purchase new equipment. If $30,000 is invested at 30%, $20,000 at 25%, and the remaining $50,000 at 20% per year, what is the overall rate of return on the entire $100,000?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