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.
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.
Chapter1: Making Economics Decisions
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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=?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f20b163-7f8f-429b-926f-89a8e122bb5a%2F640c93a9-2c07-454f-9527-d1628d1cf32f%2F8vfwb_processed.jpeg&w=3840&q=75)
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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