3. A design-build-operate engineering company in Texas that owns a sizable amount of land plans to lease the drilling rights (oil and gas only) to a mining and exploration company. The contract calls for the mining company to pay $20,000 per year for 20 years beginning 3 years from now (i.e., beginning at the end of year 3 and continuing through year 22) plus $10,000 six years from now and $15,000 sixteen years from now. Utilize engineering economy relations by hand to determine the five equivalent values listed below at 16% per year. a) Total present worth Pr in year 0. b) Future worth F in year 22. c) Annual series over all 22 years. d) Annual series over the first 10 years.

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3. A design-build-operate engineering company in Texas that owns a sizable amount of land
plans to lease the drilling rights (oil and gas only) to a mining and exploration company.
The contract calls for the mining company to pay $20,000 per year for 20 years beginning
3 years from now (i.e., beginning at the end of year 3 and continuing through year 22)
plus $10,000 six years from now and $15,000 sixteen years from now. Utilize
engineering economy relations by hand to determine the five equivalent values listed
below at 16% per year.
a) Total present worth PT in year 0.
b) Future worth F in year 22.
c) Annual series over all 22 years.
d) Annual series over the first 10 years.
e) Annual series over the last 12 years.
4 5
$10,000
个
6
$15,000
||
711 16
17
i=16%
18
$20,000
19
20
21 22
Years
F=?
Transcribed Image Text:3. A design-build-operate engineering company in Texas that owns a sizable amount of land plans to lease the drilling rights (oil and gas only) to a mining and exploration company. The contract calls for the mining company to pay $20,000 per year for 20 years beginning 3 years from now (i.e., beginning at the end of year 3 and continuing through year 22) plus $10,000 six years from now and $15,000 sixteen years from now. Utilize engineering economy relations by hand to determine the five equivalent values listed below at 16% per year. a) Total present worth PT in year 0. b) Future worth F in year 22. c) Annual series over all 22 years. d) Annual series over the first 10 years. e) Annual series over the last 12 years. 4 5 $10,000 个 6 $15,000 || 711 16 17 i=16% 18 $20,000 19 20 21 22 Years F=?
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