Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 6, Problem 20P
To determine

Calculate the rate of return.

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A new permanent endowment at the University of Alabama will award scholarships to engineering students twice per year (end of June and end ofDecember). The first awards are to be made beginning 5-1⁄2 years after the $20 million lump sum donation is made. If the interest from the endowment is intended to fund 100 students each semester in the amount of $5000 twice per year, what semiannual rate of return must the endowment fund earn?
Problem 4-9 Tom started investing, as soon as he started his first job, at the rate of $400 per month as soon as get paid into a savings account that earns an interest of 1% per month. What equation or expression may be used to determine the account value 10 years from now?
Which are the three cash flow elements are determined (both inflows and outflows)?

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Basics Of Engineering Economy

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