4:09Assignment 2-2022.pdf4. Construct a cash flow diagram to find the present worth in year 0 atan interest rate of 12% per year for the following situation.YearCash Flow,$05. Construct a cash flow diagram that represents the amount of moneythat will be accumulated in 20 years from an investment of $30,000now at an interest rate of 10% per year.6. for the cash flow diagram shown, what are the present and thefuture worth in year 4?i = 7%/semiannual period1247034202437001-55320632707Y2204-15,000+8,5008200:!!! 5GYearsSemiannual periods7. Construct the cash flow diagram for A mechanical device will cost$20,000 when purchased. Maintenance will cost $1000 per year.The device will generate revenues of $5000 per year for 5 years.The salvage value is $7000.8. Each year Exxon-Mobil expends large amounts of funds formechanical safety features throughout its worldwide operations.Carla Ramos, a lead engineer for Mexico and Central Americanoperations, plans expenditures of $1 million now and each of the2next 4 years just for the improvement of field-based pressure-release valves. Construct the cash flow diagram and find theequivalent value of these expenditures at the end of year 4, using acost of capital estimate for safety-related funds of 12% per year.9. An electrical engineer wants to deposit an amount P now such thatshe can withdraw an equal annual amount of A1 $2000 per yearfor the first 5 years, starting 1 year after the deposit, and a differentannual withdrawal of A2 = $3000 per year for the following 3 years.How would the cash flow diagram appear if i= 8.5% per year?-10. Henry Mueller Supply Co. sells tamperproof, normally openthermostats (i.e., thermostat closes as temperature rises). Annualcash flows are shown in the table below. Construct the cash flowdiagram from this table at an interest rate of 10% per year0

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4. Construct a cash flow diagram to find the present worth in year 0 at an interest rate of 12% per year for the following situation. Year 0 1-5 Cash Flow, $ -15,000 +8,500

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Question

4:09
Assignment 2-2022.pdf
4. Construct a cash flow diagram to find the present worth in year 0 at
an interest rate of 12% per year for the following situation.
Year
Cash Flow,
$
0
5. Construct a cash flow diagram that represents the amount of money
that will be accumulated in 20 years from an investment of $30,000
now at an interest rate of 10% per year.
6. for the cash flow diagram shown, what are the present and the
future worth in year 4?
i = 7%/semiannual period
1
2
470
3
420
2
4
370
0
1-5
5
320
6
3
270
7
Y
220
4
-15,000
+8,500
8
200
:!!! 5G
Years
Semiannual periods
7. Construct the cash flow diagram for A mechanical device will cost
$20,000 when purchased. Maintenance will cost $1000 per year.
The device will generate revenues of $5000 per year for 5 years.
The salvage value is $7000.
8. Each year Exxon-Mobil expends large amounts of funds for
mechanical safety features throughout its worldwide operations.
Carla Ramos, a lead engineer for Mexico and Central American
operations, plans expenditures of $1 million now and each of the
2
next 4 years just for the improvement of field-based pressure-
release valves. Construct the cash flow diagram and find the
equivalent value of these expenditures at the end of year 4, using a
cost of capital estimate for safety-related funds of 12% per year.
9. An electrical engineer wants to deposit an amount P now such that
she can withdraw an equal annual amount of A1 $2000 per year
for the first 5 years, starting 1 year after the deposit, and a different
annual withdrawal of A2 = $3000 per year for the following 3 years.
How would the cash flow diagram appear if i= 8.5% per year?
-
10. Henry Mueller Supply Co. sells tamperproof, normally open
thermostats (i.e., thermostat closes as temperature rises). Annual
cash flows are shown in the table below. Construct the cash flow
diagram from this table at an interest rate of 10% per year
0

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