Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 5, Problem 23P
Fill in Table P5-23 below when P = $10,000, S = $2, 000 (at the end of four years), and i = 15% per year. Complete the accompanying table and show that the equivalent uniform CR amount equals $3,102.12. (5.5)
Table P5-23 Table for Problem 5-23
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
It is likely that your college tuition will increase an average of 8% per year for the next 4 years. The annual cost of tuition at the beginning of your freshman year in college will be $12,000 (A1). How much money will you and your parents have to deposit in a mutual fund account one year prior to your freshman year to pay for your tuition for the 4 years you will spend earning your degree in engineering? The mutual fund will earn an average of 5% annual interest.
Problem 03.013- Annual worth calculations
What is the equivalent annual cost in years 1 through 9.00 of a contract that has a first cost of $77,000 in year 0 and annual costs of
$17,000 in years 3 through 9.00? Use an interest rate of 15.00% per year. (Round the final answer to three decimal places.)
The equivalent annual cost is determined to be $ I
A certain medical device will result in an estimated $15,000 reduction in hospital labor expenses during its first
year of operation. Labor expenses (and thus savings) are projected to increase at a rate of 7% per year after the first
year. Additional operating expenses for the device (maintenance, electric power, etc.) are $3,500 annually, and they
increase by $250 per year thereafter (i.e., $3,750 in year two and so on). It is anticipated that the device will last for
10 years and will have no market value at that time. If the MARR is 10% per year, how much can the hospital afford
to pay for this device? Use an Excel spreadsheet in your solution.
Chapter 5 Solutions
Engineering Economy (17th Edition)
Ch. 5.A - Use the ERR method with = 8% per year to solve for...Ch. 5.A - Apply the ERR method with = 12% per year to the...Ch. 5.A - Are there multiple IRRs for the following...Ch. 5.A - Are there multiple IRRs for the following cash...Ch. 5 - Tennessee Tool Works (TTW) is considering...Ch. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - What is the capitalized worth of a project that...Ch. 5 - A large induced-draft fan is needed for an...
Ch. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - A corporate bond pays 5% of its face value once...Ch. 5 - Prob. 11PCh. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - The cash-flow diagram below has an internal rate...Ch. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Prob. 19PCh. 5 - Your firm is thinking about investing 200,000in...Ch. 5 - Determine the FW of the following engineering...Ch. 5 - Prob. 22PCh. 5 - Fill in Table P5-23 below when P = 10,000, S = 2,...Ch. 5 - An asset has an initial capital investment of4...Ch. 5 - A simple, direct space heating system is currently...Ch. 5 - Prob. 26PCh. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Its easier to make money when interest rates in...Ch. 5 - Prob. 31PCh. 5 - Prob. 32PCh. 5 - Stan Moneymaker has been informed of a major...Ch. 5 - The required investment cost of a new, large...Ch. 5 - Prob. 35PCh. 5 - A parking garage has a capital investment cost of...Ch. 5 - The city of Oak Ridge is considering the...Ch. 5 - Prob. 38PCh. 5 - Prob. 39PCh. 5 - Prob. 40PCh. 5 - Prob. 41PCh. 5 - Prob. 42PCh. 5 - Prob. 43PCh. 5 - To purchase a used automobile, you borrow 10,000...Ch. 5 - Your boss has just presented you with the summary...Ch. 5 - Experts agree that the IRR of a college education...Ch. 5 - A company has the opportunity to take over a...Ch. 5 - The prospective exploration for oil in the outer...Ch. 5 - Prob. 49PCh. 5 - An integrated, combined cycle power plant produces...Ch. 5 - A computer call center is going to replace all of...Ch. 5 - Prob. 52PCh. 5 - Prob. 53PCh. 5 - Prob. 54PCh. 5 - The upturned wingtips on jet aircraft reduce drag...Ch. 5 - Prob. 56PCh. 5 - Prob. 57PCh. 5 - Prob. 58PCh. 5 - In southern California a photovoltaic (PV) system...Ch. 5 - a. Calculate the IRR for each of the three...Ch. 5 - Prob. 61PCh. 5 - A hospital germ-fighting and floor cleaning robot,...Ch. 5 - Prob. 63PCh. 5 - Prob. 64SECh. 5 - Prob. 65SECh. 5 - Prob. 66SECh. 5 - A certain medical device will result in an...Ch. 5 - Refer to Problem 5-61. Develop a spreadsheet to...Ch. 5 - Prob. 69CSCh. 5 - Prob. 70CSCh. 5 - Suppose that the average utilization of the CVD...Ch. 5 - Prob. 72FECh. 5 - Prob. 73FECh. 5 - Prob. 74FECh. 5 - Prob. 75FECh. 5 - Prob. 76FECh. 5 - Prob. 77FECh. 5 - Prob. 78FECh. 5 - Prob. 79FECh. 5 - A new machine was bought for 9,000 with life of...Ch. 5 - Prob. 81FECh. 5 - Prob. 82FECh. 5 - Prob. 83FECh. 5 - Prob. 84FECh. 5 - Prob. 85FE
Additional Business Textbook Solutions
Find more solutions based on key concepts
Consider the cash flows from an investment project. (a) Compute the net present worth of the project at i = 10%...
Contemporary Engineering Economics (6th Edition)
If a 3-percent increase in the price of corn flakes causes a 6-percent decline in the quantity demanded, what i...
Microeconomics (9th Edition) (Pearson Series in Economics)
Assume the United States is an importer of televisions and there are no trade restrictions. US consumers buy 1 ...
Principles of Microeconomics (MindTap Course List)
• Illustrate and interpret shifts in the short-run and long-run aggregate supply curves.
Economics of Money, Banking and Financial Markets, The, Business School Edition (5th Edition) (What's New in Economics)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Problem 03.015- Annual worth calculations Improvised explosive devices (IEDs) are responsible for many deaths in times of strife and war. Unmanned ground vehicles (robots) can be used to disarm the IEDs and perform other tasks as well. If the robots cost $125,000 each and the military arms unit signs a contract to purchase 4,000 of them now and another 7,500 one year from now, what is the equivalent annual cost of the contract over a 8.00-year period at 12.00% per year interest? (Round the final answer to three decimal places.) The equivalent cost of the contract is determined to be $arrow_forwardPeter got a 8-year assignment in Argentina. Consequently, he will rent out his three-bedroom house in Hancock to an old friend, and given their friendship, Peter only requires end of the year payments (thus no monthly pmts) to be deposited in a savings account created solely for this purpose. Rental income will be 13,709 dollars per year but maintenance/repair costs will be 503 dollars in the first year and thereafter increase by 213 dollars per year. The tenant will be doing the maintenance/repair operations and therefore, at the end of each year, deposits the annual rent amount net of maintenance costs. Compute how much money will Peter have in his savings account upon his return (8 years from now) given that the proxy interest rate is 7% per year, compounded annually. (note: round your answer to the nearest cent, and do not include spaces, currency signs, plus or minus signs, or commas)arrow_forwardA student plans to deposit P1, 500 in a bank now and another P3, 000 for the next two years. If he plans to withdraw P5, 000 three years after his deposit for the purpose of buying shoes. What will be the amount of money left in the bank one year after his withdrawal? Effective rate is 10%. Include a cash flow diagram on your solution.arrow_forward
- Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): Stated Rate Number of Times Effective Rate Compounded Semiannually (EAR) 10.7 % (APR) % Monthly 11.6 Weekly 9.3 Infinite 13.0arrow_forwardYou decide to open a retirement account at your local bank that pays 7% / year/month (7% per year compounded monthly). For the next 20 years, you will deposit $300 per month into the account, with all deposits and withdrawals occurring at month's end. On the day of the last deposit, you will retire. Your expenses during the first year of retirement will be covered by your company's retirement plan. As such, your first withdrawal from your retirement account will occur on the day exactly 12 months after the last deposit. Click here to access the TVM Factor Table Calculator Part a * Your answer is incorrect. What monthly withdrawal can you make if you want the account to last 20 years? $ Round entry to the nearest dollar. Tolerance is 14. Save for Later 1202 Attempts: 1 of 2 used Submit Answerarrow_forwardA small company purchased now for 1.15M will lose 75,000 each year for the first 4 years. An additional P400,000 invested in the company during the 4th year will result in a profit of 27,500 from the 5th year through the 15th year. At the end of 15 years, the company can be sold for 1.65M.a. Determine the IRR. b. Calculate FW if MARR is 12%/year.c. Calculate ERR ϵ = 12% per year. Not in excelarrow_forward
- A company predicts they will make $1,321 per year over the next 19 years if they spend $2,497 on a machine (an asset with multi-year use). If the MARR is 16.0%, how much is this investment worth per year?arrow_forwardA manufacturer offers an inventor the choice of two contracts for the exclusive right to manufacture and market the inventor’s patented design. Plan 1 calls for an immediate single payment of $52,368. Plan 2 calls for an annual payment of $2,093 plus a royalty of $1.04 for each unit sold. The remaining life of the patent is 10 years. MARR is 10% per year.What must be the uniform annual sales to make Plan 1 and Plan 2 equally attractive?arrow_forwardYou decide to open a retirement account at your local bank that pays 8%/year/month (8% per year compounded monthly). For the next 20 years you will deposit $400 per month into the account, with all deposits and withdrawals occurring at the end of the month. On the day of the last deposit, you will retire. Your expenses during the first year of retirement will be covered by your company’s retirement plan. As such, your first withdrawal from your retirement account will occur on the day exactly 12 months after the last deposit. a. What monthly withdrawal can you make if you want the account to last 15 years? b. What monthly withdrawal can you make if you want the account to last forever (with infinite withdrawals) ?arrow_forward
- Problem 02.038 - Calculation of unknown base cash flow The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $600,000. If the gradient increase each year, G, is $1500, determine the cash flow in year 1 at an interest rate of 11% per year. The cash flow in year 1 is $arrow_forwardA manufacturer offers an inventor the choice of two contracts for the exclusive right to manufacture and market the inventor's patented design. Plan 1 calls for an immediate single payment of $52,343. Plan 2 calls for an annual payment of $2,273 plus a royalty of $1.72 for each unit sold. The remaining life of the patent is 10 years. MARR is 10% per year. What must be the uniform annual sales to make Plan 1 and Plan 2 equally attractive? Round your answer. Enter your answer as: 12345arrow_forwardDetermine the FW of the following engineering project when the MARR is 15% per year. Is the project acceptable? (5.4) *A negative market value means that there is a net cost to dispose of an asset. Investment cost Expected lifeMarket (salvage) value* Annual receiptsAnnual expenses $10,000 5 years -$1,000 $8,000 $4,000arrow_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
Difference between Renewable and Nonrenewable Resources; Author: MooMooMath and Science;https://www.youtube.com/watch?v=PLBK1ux5b7U;License: Standard Youtube License