4. X generator has a first cost of $20,000, AOC of $15,000, and S of $5000 after 4 years. Y generator has a first cost $40,000 with an AOC of $15,000 and S of $8000 after 6 years. Find AW of each if the interest rate is 12% per year: 5. A student wants to pay for her education in three years from now. She expects that the tuition fees will be $20000 in three years. Approximately, how much money should she put currently in her savings account if a bank pays 3% interest rate on that account?

4. X generator has a first cost of $20,000, AOC of $15,000, and S of $5000 after 4 years. Y generator has a first cost $40,000 with an AOC of $15,000 and S of $8000 after 6 years. Find AW of each if the interest rate is 12% per year: 5. A student wants to pay for her education in three years from now. She expects that the tuition fees will be $20000 in three years. Approximately, how much money should she put currently in her savings account if a bank pays 3% interest rate on that account?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

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4. X generator has a first cost of $20,000, AOC of $15,000, and S of $5000 after 4 years. Y generator has
a first cost $40,000 with an AOC of $15,000 and S of $8000 after 6 years. Find AW of each if the interest
rate is 12% per year:
5. A student wants to pay for her education in three years from now. She expects that the tuition fees
will be $20000 in three years. Approximately, how much money should she put currently in her savings
account if a bank pays 3% interest rate on that account?

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