ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 6, Problem 50P
To determine
Introduction: Cash flow analysis is the analysis by which
To select: The project based on cash flow analysis.
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Three neighboring counties in a state have agreed to pool tax resources already designated for county-maintained bridge refurbishment. At a recent meeting, the county engineers estimated that a total of $500,000 will be deposited at the end of next year into an account for the repair of old and safety-questionable bridges throughout the three-county area. Further, they estimate that the deposits will increase by $100,000 per year for 9 years thereafter, and then cease.
At an interest rate of 5% per year, find the equivalent present worth (PW) of the repair costs.
a.$ 7,206,050
b.$ 7,026,050
c.$3,815,270
d.$ 8,315,270
Three neighboring counties in a state have agreed to pool tax resources already designated for county-maintained bridge refurbishment. At a recent meeting, the county engineers estimated that a total of $500,000 will be deposited at the end of next year into an account for the repair of old and safety-questionable bridges throughout the three-county area. Further, they estimate that the deposits will increase by $100,000 per year for 9 years thereafter, and then cease.
At an interest rate of 5% per year, find the equivalent annual worth (AW) of the repair costs.
a.$ 536,670
b.$ 909,910
c.$ 909,190
d.$ 536,760
Two insulation thickness alternatives have been
proposed for a process steam line subject to severe
weather conditions. One alternative must be selected.
Estimated installation cost and annual savings in heat
loss are given below. \table[[\table[[Insulation], [
Thickness]], Installed Cost, \table[[Annual Savings in], [
Heat Loss]], Life of Insulation], [2cm, $20,000, $6,900 per
year,4 years], [3cm, $35,000, $9,000 per year, 6 years]]
The MARR = 10% per year. The study period is 12
years. Draw the cash flow diagram for each alternative
over the entire study period.
Two insulation thickness alternatives have been proposed for a process steam line subject to
severe weather conditions. One alternative must be selected. Estimated installation cost and
annual savings in heat loss are given below.
Insulation
Thickness
2cm
Installed Cost
$20,000
$35,000
Annual Savings in
Heat Loss
$6,900 per year
$9,000 per year
Life of Insulation
4 years
6 years
3cm
=
The MARR 10% per year. The study period…
Chapter 6 Solutions
ENGR.ECONOMIC ANALYSIS
Ch. 6 - Prob. 1QTCCh. 6 - Prob. 2QTCCh. 6 - Prob. 3QTCCh. 6 - Prob. 4QTCCh. 6 - Prob. 5QTCCh. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Prob. 5P
Ch. 6 - Prob. 6PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Prob. 9PCh. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Prob. 17PCh. 6 - Prob. 18PCh. 6 - Prob. 19PCh. 6 - Prob. 20PCh. 6 - Prob. 21PCh. 6 - Prob. 22PCh. 6 - Prob. 23PCh. 6 - Prob. 24PCh. 6 - Prob. 25PCh. 6 - Prob. 26PCh. 6 - Prob. 27PCh. 6 - Prob. 28PCh. 6 - Prob. 29PCh. 6 - Prob. 30PCh. 6 - Prob. 31PCh. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Prob. 34PCh. 6 - Prob. 35PCh. 6 - Prob. 36PCh. 6 - Prob. 37PCh. 6 - Prob. 38PCh. 6 - Prob. 39PCh. 6 - Prob. 40PCh. 6 - Prob. 41PCh. 6 - Prob. 42PCh. 6 - Prob. 43PCh. 6 - Prob. 44PCh. 6 - Prob. 45PCh. 6 - Prob. 46PCh. 6 - Prob. 47PCh. 6 - Prob. 48PCh. 6 - Prob. 49PCh. 6 - Prob. 50PCh. 6 - Prob. 51PCh. 6 - Prob. 52PCh. 6 - Prob. 53PCh. 6 - Prob. 54PCh. 6 - Prob. 55PCh. 6 - Prob. 56PCh. 6 - Prob. 57PCh. 6 - Prob. 58PCh. 6 - Prob. 59PCh. 6 - Prob. 60PCh. 6 - Prob. 61PCh. 6 - Prob. 62PCh. 6 - Prob. 63PCh. 6 - Prob. 64PCh. 6 - Prob. 65PCh. 6 - Prob. 66PCh. 6 - Prob. 67PCh. 6 - Prob. 68PCh. 6 - Prob. 69PCh. 6 - Prob. 70PCh. 6 - Prob. 71PCh. 6 - Prob. 72PCh. 6 - Prob. 73PCh. 6 - Prob. 74PCh. 6 - Prob. 75PCh. 6 - Prob. 76PCh. 6 - Prob. 77P
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