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
Videos
Question
Chapter 5, Problem 42APQ
To determine
Calculate the annual worth for infinitive time period.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Your 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 places
Army Research Laboratory scientists developed a diffusion-enhanced adhesion process which is expected to significantly improve the performance of multifunction hybrid composites. NASA engineers estimate that composites made using the new process will result in savings in space exploration projects. The cash flows for one project are estimated. Determine the rate of return per year. Year, t Cost ($1000) Savings ($1000) 0 −210 — 1 −150 — 2–5 — 100 + 60(t − 2)
Q3 solution needed. another pic is just for helping material
Chapter 5 Solutions
Basics Of Engineering Economy
Ch. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - Prob. 10P
Ch. 5 - Two machines with the following cost estimates are...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Estimates have been presented to Holly Farms,...Ch. 5 - Prob. 20PCh. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - A major repair on the suspension system of Janes...Ch. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - Prob. 31PCh. 5 - Prob. 32APQCh. 5 - Prob. 33APQCh. 5 - Prob. 34APQCh. 5 - Prob. 35APQCh. 5 - Prob. 36APQCh. 5 - The AW values of three revenue alternatives are ...Ch. 5 - Prob. 38APQCh. 5 - Prob. 39APQCh. 5 - Use an interest rate of 10% per year. The...Ch. 5 - Prob. 41APQCh. 5 - Prob. 42APQ
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
- Simplifying [(n+1)! / n!] gives what?arrow_forwardQ3 solutionarrow_forwardA factory installs new machinery that saves S(x) = 1800 dollars per year. y $ per year 1800 savings S=1800- 80 x net savings cost C = 100 x Year 80x dollars per year, where x is the number of years since installation. However, the cost of maintaining the new machinery is C(x) : = 100x X (a) Find the year x at which the maintenance cost C(x) will equal the savings S(x). (At this time, the new machinery should be replaced. Round your answer to the nearest whole number.) X = years (b) Find the accumulated net savings (in dollars) [savings S(x) minus cost C(x)] during the period from t = 0 to the replacement time found in part (a). (Round your answer to the nearest whole number.)arrow_forward
- 0 = -26,000 + 8,000(P/A,i∗,5) + 8,000(P/F,i∗,8) solve for i* it is the interest rate periodarrow_forwardA road can be paved with either asphalt or concrete. Concrete costs $20,000/mile and lasts for 20 years. What is the maximum that should be spent on asphalt, which lasts only 10 years? The annual maintenance costs are $500/mile for both pavements. The cost of money = 8%.arrow_forwardQ13 solution need justarrow_forward
- The future worth of a project with initial cost P, positive annual cash flows of A, salvage value S, and interest rate of i over a life of n years can be calculated using which statement? (a) FW = −P(F/P, i%, n) + A(F/A, i%, n) + S(F/P, i%, n) (b) FW = P(F/P, i%, n) + A(F/A, i%, n) + S (c) FW = −P(P/F, i%, n) + A(F/A, i%, n) − A[(P/A, i%, n) + S (d) FW = −P(F/P, i%, n) + A(F/A, i%, n) + S?arrow_forwardConsider the comparison between alternatives A and B. Using present worth method of analysis, and at an interest rate of 10% per year, the values of n that you should use in the uniform series factors to make a correct comparison are: A B First Cost ₱500,000 ₱900,000 Annual Operating Cost ₱100,000 ₱40,000 Salvage Value ₱130,000 ₱150,000 Life 3 years 6 years a. n=3 years for A and n=3 years for B b. n=3 years for A and n=6 years for B c. n=6 years for A and n=6 years for B d. n=6 years for A and n=3 years for Barrow_forwardOption i C/R Option ii C/R One Time Costs One Time Costs Land-$10 million (Year 1) C Renovations- $35M (Year 0) C Construction- $100 million ($50 M per year for 2 years C Medical Equipment- $20M (Year 0) C Medical equipment- $25million (Year 0) C Licensing & Consulting- $5M (Year 0) C Licensing & Consulting- $15M (spread across year 1 and 2) C Initial Marketing Campaign- $2M (Year 1) C Initial Marketing Campaign- $5 million (Year 3) C Annual Values Annual Values Operations & Staff- $7M / year (Year 2+) C Operations & Staff- $11M / year (Year 3+) C Maintenance- $2M / year (Year 2+) C Maintenance- $2.5M / year (Year 3+) C Tech Updates- $1.2M / year (Year 3+) C Tech Updates-$1.5M / year (Year 5+) C Overhauls Overhauls Equipment Repairs- $13M (Year 10) C Equipment Repairs- $18M (Year 10) C Facilities Upgrades- $20M (Year 15) C…arrow_forward
- You are offered the choice of two payment streams: (a) $150 paid one year from now and $150 paid two years from now; (b) $130 paid one year from now and $160 paid two years from now. How much payment streams do options (b) provide? Yanıt:arrow_forwardThe required investment cost of a new, large shopping center is $51 million. The salvage value of the project is estimated to be $18 million (the value of the land). The project's life is 12 years and the annual operating expenses are estimated to be $16 million. The MARR for such projects is 15% per year. What must the minimum annual revenue be to make the shopping center a worthwhile venture? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. To make the shopping center a worthwhile venture, the minimum annual revenue must be $ million per year. (Round to three decimal places.) Reference Discrete Compounding; i=15% Single Payment Uniform Series Compound Amount Compound Sinking Fund Capital Recovery Factor Present Amount Present Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N FIP PIF FA PIA AIF AIP 1.1500 0.8696 1.0000…arrow_forwardAn investor has invested $250,000 in a new rental property. Her estimated annual costs are $6000 and annual revenues are $20,000. What rate of return per year will the investor make over a 30-year period ignoring the salvage value? If the property can be sold for $200,000 what is the rate of return?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
Valuation Analysis in Project Finance Models - DCF & IRR; Author: Financial modeling;https://www.youtube.com/watch?v=xDlQPJaFtCw;License: Standard Youtube License