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? 6. Assume $100,000 is available for investment where MARR = 16% per year. If alternative X would earn 35% per year on investment of $40,000, and Y would earn 29% per year on investment of $65,000, the weighted averages are: 7. Expenses for water treatment at a state park are expected to be $60,000 now, $25,000 in year one, and $10,000 per year thereafter forever. At an interest rate of 10% per year, the capitalized cost of the treatment is nearest to 8. An expenditure for maintaining a bridge occurs in five-year cycles. If the cost is $100,000 now and $100,000 every five years forever, the capitalized cost of this expenditure at 10% per year is nearest to: 9. If a machine has a first cost of $20,000, has an annual operating cost of $8000, and has a salvage value of $5000 after 2 years, then the AW for one and two life cycles at i = 10% would respectively be:
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? 6. Assume $100,000 is available for investment where MARR = 16% per year. If alternative X would earn 35% per year on investment of $40,000, and Y would earn 29% per year on investment of $65,000, the weighted averages are: 7. Expenses for water treatment at a state park are expected to be $60,000 now, $25,000 in year one, and $10,000 per year thereafter forever. At an interest rate of 10% per year, the capitalized cost of the treatment is nearest to 8. An expenditure for maintaining a bridge occurs in five-year cycles. If the cost is $100,000 now and $100,000 every five years forever, the capitalized cost of this expenditure at 10% per year is nearest to: 9. If a machine has a first cost of $20,000, has an annual operating cost of $8000, and has a salvage value of $5000 after 2 years, then the AW for one and two life cycles at i = 10% would respectively be:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text: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?
6. Assume $100,000 is available for investment where MARR = 16% per year. If alternative X would earn
35% per year on investment of $40,000, and Y would earn 29% per year on investment of $65,000, the
weighted averages are:
7. Expenses for water treatment at a state park are expected to be $60,000 now, $25,000 in year one,
and $10,000 per year thereafter forever. At an interest rate of 10% per year, the capitalized cost of the
treatment is nearest to
8. An expenditure for maintaining a bridge occurs in five-year cycles. If the cost is $100,000 now and
$100,000 every five years forever, the capitalized cost of this expenditure at 10% per year is nearest to:
9. If a machine has a first cost of $20,000, has an annual operating cost of $8000, and has a salvage value
of $5000 after 2 years, then the AW for one and two life cycles at i = 10% would respectively be:
10. Litani river project will have a first cost of $1.4 million with an annual maintenance cost of $50,000
and a 10-year life. Recycling is expected to amount to $300,000 per year. Lost income to residents is
estimated to be $35,000 per year. At an interest rate of 10% per year, based on calculation, B/C is equal
to:
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