Q1/a-A project has the following costs and benefits. What is the payback period?Costs (CU)Benefits (CU)year012014005000300400300 in each year03-10 yearb-Find the resent worth for a factory that has the cash flow as shown in the figure bellow assuming that10%.6000CU/year010000CU1Investment (CU)Net cash flow (CU/year)Salvage value (CU)Life (year)25000 CU/year3456Alternative 114000500030005789Q2:A) A contractor is planning to purchase a new bulldozer that cost (6 *10' CU). Calculate the schedule ofdepreciation and book value at the end of each year for the bulldozer's useful life (6 years) if you knowthat the salvage value is (300 000CU).B) Find the Present Worth of a future sum of 25 000CU for the period of (7 years), if the interest rate is10% for the first three years and 2% per month for the years from 4 to 7?Q3: a company owner wants to choose one of two alternatives shown in the table, if the interest rate was 10%and the cash flow is as in the table below:10Alternative 2130004500400010

Interest rate / MARR = 10%Cashflow:YearCashflow0-10000102035000450005500060760008600096000106000To…

Answered: 3-10 year b-Find the resent worth for a…

3-10 year b-Find the resent worth for a factory that has the cash flow as shown in the figure bellow assuming that 6000CU/year 10%. 02: 10000CU 1 2 5000 CU/year 3 4 5 6 789 10 schedule of

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

Q1/a-A project has the following costs and benefits. What is the payback period?
Costs (CU)
Benefits (CU)
year
0
1
2
0
1400
500
0
300
400
300 in each year
0
3-10 year
b-Find the resent worth for a factory that has the cash flow as shown in the figure bellow assuming that
10%.
6000CU/year
0
10000CU
1
Investment (CU)
Net cash flow (CU/year)
Salvage value (CU)
Life (year)
2
5000 CU/year
3
4
5
6
Alternative 1
14000
5000
3000
5
789
Q2:
A) A contractor is planning to purchase a new bulldozer that cost (6 *10' CU). Calculate the schedule of
depreciation and book value at the end of each year for the bulldozer's useful life (6 years) if you know
that the salvage value is (300 000CU).
B) Find the Present Worth of a future sum of 25 000CU for the period of (7 years), if the interest rate is
10% for the first three years and 2% per month for the years from 4 to 7?
Q3: a company owner wants to choose one of two alternatives shown in the table, if the interest rate was 10%
and the cash flow is as in the table below:
10
Alternative 2
13000
4500
4000
10

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