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 5, Problem 9P
To determine
Calculate the monthly value.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A recently hired CEO (chief executive officer)wants to reduce future production costs to improve the company’s earnings, thereby increasing the value of the company’s stock. The plan is to invest $70,000 now and $50,000 in each of the next 2 years to improve productivity. By how much must annual costs decrease in years 3 through 10 to recover the investment plus a return of 15% per year?
A recently hired chief executive officer wants to reduce future production costs to improve the company's earnings, thereby increasing
the value of the company's stock. The plan is to invest $92,000 now and $66,000 in each of the next 4 years to improve
productivity. By how much must annual costs decrease in years 5 through 11 to recover the investment plus a return of 9% per year?
The annual cost decreases by $ 83,180
If money is worth 5% per year, would it be a good investment to spend $100,000 for a new food processing unit (with zero salvage value) which would save spending $12,000 per year for the next 7 years?
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
Similar questions
- The National Highway Traffic Safety Administration raised the average fuel efficiency standard to 35.5 miles per gallon for cars and light trucks bythe year 2016. The rules will cost consumers an average of $434 extra per vehicle in the 2012 model year. If a person purchases a new car in 2012 and keeps it for 5 years, how much must be saved in fuel costs each year to justify the extra cost? Use an interest rate of 8% per yeararrow_forwardA new roof will cost $15,000. It will be installed in 10 years. If the interest rate is 9% per year, how much must be saved each year to accumulate $15,000 after 10 years? If the interest rate is 9% per year, the amount to be saved annually is $ ?arrow_forwardThe council members of a small town have decided that the earth levee that protects the town from a nearby river should be rebuilt and strengthened. The town engineer estimates that the cost of the work is $85,000 per year (starting in year 1). The council members want to know what the present worth of the costs is for the first 5 years (i.e. years 1 to 5) of repair work if interest is 4% per year. Write your answer with conversion factors. Do not need to calculate the actual value.arrow_forward
- What is the amount of capital that earns simple interest: a) $1500 at 18% per year in 10 months?b) $8500 at 22% per year in 3 years and 4 months?arrow_forwardIf the savings will be $150,000 the first year, $160,000 the second, and amounts increasing by $10,000 each year for 8 years, what is the present worth of the system at an intersest rate of 15% per year?arrow_forwardEngineering economics At an interest rate of 10% per year, the perpetual annual cost of $70000 now. What will be the value of this annual cost after 10 year.arrow_forward
- If an engineer invested $15,000 on January 1, 1991, into a retirement account that earned 6% per year interest, how much money will be in the account on January 1, 2016?arrow_forwardThe amount of P20,000.00 was borrowed from a lending investor at an interest rate of 5% per month. How the interest is he going to pay at the end of 10months? Solve manuallyarrow_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
- What is the present equivalent of RM 25,000 to be received in 20 years wheninterest rate is 6% per year componded semiannually?.arrow_forwardIdentify the engineering economy symbols and their values. Use a question mark with the symbol whose value is to be determined. Fifteen years ago your grandfather invested $18,000 in a stock fund to pay for your college education. Each year thereafter, he deposited $2,600 into the fund. If the investments grew at a rate of 8% per year over the 15 years, how much is in the fund now? $18,000 = (Click to select) n A i F P $2,600 = (Click to select) F i A n P 0.08 = (Click to select) P n i A F 15 = (Click to select) n P i A F ? = (Click to select) P n i A Farrow_forwardAn industrial engineering consulting firm signed a lease agreement for simulation software. Calculate the present worth in year O if the lease requires a payment of $25,000 now and amounts increasing by 5% per year through year 7. Use an interest rate of 11% per year. The present worth in year O is $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