Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 8, Problem 45P
To determine

Calculate the present worth.

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Q1: A contract was transferred for a period of 7 months at a total cost of $200,000 as in the table below, provided that an of the contract amount at the end of the second month, %10 operating advance is granted to the contractor in the amount of The first payment is provided that the employer recovers it from the contractor in the form of two consecutive equal payments And retrieve it according returned at the end of the fifth month, and the second payment is returned at the end of the sixth month to the general conditions of contracting. The maintenance period is 6 months. . Required to perform cash flow calculations The contractor has imposed a profit of 18%, and the contractor is entitled to an advance every two months, and the assuming procedures for paying the advance take one month i months 1 2 3 4 6. 7 1000 * Cost 25 22 33 35 25 30 30
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