Engineering Economy (16th Edition) - Standalone book
16th Edition
ISBN: 9780133439274
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Question
Chapter 9, Problem 1P
To determine
Calculate the present worth.
Expert Solution & Answer
Explanation of Solution
Time period is denoted by n and the interest is denoted by i. The present worth (PW) of defender (Old boat) can be calculated as follows.
Annual worth of defender is $4,085.
The present worth (PW) of challenger (New boat) can be calculated as follows.
Present worth is $4,870. Since the present worth of the cost is less for the defender, retain the defender one more year.
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Students have asked these similar questions
A transit system is considering buying 6 more buses to provide better service. It will cost $100,000 for buying a new bus and $15,000 per year for maintenance and operation for the following 8 years. If the city’s MARR is 8%, what is the equivalent uniform annual cost of this project? Assume the bus has no value at the end of 8 years.
Mr. Russ T. Steele sells his old vehicle for $5000 (you get more if you private salel) and pays cash for a used (but newer vehicle) that
costs $10,000. He also understands that he needs to allow for maintenance and operation costs of his vehicle. He estimates that these
costs will be approximately $2000 a year and estimates that the costs will increase by $100 per year. He hopes to keep the vehicle for
five years and then sell it for an estimated value of $2000. Mr. Steele has an MARR of 8%. The present value of the cash flow
associated with his purchase is most nearly:
Oa. -$7,400
b.$-12,400
C $12,000
Od.-$15,100
4. In 5 years, $18,000 will be needed to
pay for a building renovation. In order to
generate this sum, a sinking fund consisting
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Chapter 9 Solutions
Engineering Economy (16th Edition) - Standalone book
Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - A city water and waste-water department has a...Ch. 9 - Prob. 9PCh. 9 - Prob. 10P
Ch. 9 - Prob. 11PCh. 9 - Prob. 12PCh. 9 - Use the PW method to select the better of the...Ch. 9 - Prob. 14PCh. 9 - Prob. 15PCh. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 26PCh. 9 - Prob. 27SECh. 9 - Prob. 28SECh. 9 - Prob. 29CSCh. 9 - Prob. 30CSCh. 9 - Prob. 31CSCh. 9 - Prob. 32FECh. 9 - Prob. 33FECh. 9 - Prob. 34FECh. 9 - Prob. 35FECh. 9 - Prob. 36FE
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