Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 6, Problem 18P
To determine

Calculate the cost per acre.

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You and one of your classmates are considering setting up a prescription delivery service for local residents in Mount Pearl. In order to start the business you will need to purchase a car for $7,200 which you expect you will be able to sell for $3,600 at the end of every two years (you'll have to purchase a new equivalent car at that time). Insurance costs are $560 for each six months of operation, starting immediately, and advertising costs (flyers, newspaper ads, etc.) are estimated to be $110 per month. All calculations are performed using 4 significant figures. The big question is how many customers you will have, but you figuring on setting a fee of $2 per delivery, which will be payable by your clients at the end of each month. Assuming a stable interest rate of 6% per year, compounded monthly what is the break even number of deliveries per month?
A father wants to start setting aside money for his daughter's college fees, who is eight years old. In ten years, the daughter will start college. She will need to pay for her college costs for four years with an annual sum of $20,000 in current (constant) dollars. Assume that these tuition payments will be sent in at the start of every academic year. (At the conclusion of ten years, the first payment is made.) The interest rate on the savings account will be 8% compounded quarterly (market interest rate) during this time, whereas the expected general inflation rate for the future is 5% annually. How much money would the daughter need to borrow in order to pay for her freshman year if the father decides to save only $500 (real money) per quarter? (a) $1,920 (b) $2,114 (c) $2,210 (d) $2,377
Planning for a major redesign, Itumeleng collected data at her store on several consecutive Saturday mornings. She noticed that customers arrived at the checkout at a rate of approximately 100 per hour. Fully 20 percent of the customers had 10 items or less. Those people took about 2 minutes to serve on average, while customers with more than 10 items took about 4 minutes to process. Itumeleng expects service time to improve when universal price code readers are installed in the new design. Help Itumeleng with her design for the system,
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