4:094703 of 3Assignment 2-2022.pdf420ct 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?0Year1Income, $1000 200Cost, $10009010. 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 year.22009021%T12Year320090End of the Problems42009011. The following cash flows are given below, which one is higherin value F1 or F2?:!!! 5G5200900620090O=720090F₂i%YearH123-N820090Best wishesThe coordinators of the course

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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 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.

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 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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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