A $200,000 loan is to be repaid in equal yearlypayments over 27 years at an interest rate of 3.5%compounded annually.Question 3 Part B: How much of the 8th payment isapplied to the interest? Enter your answer in theform: 12345.67 The company you work for wants to start a newproject. The initial cost of the project is $120,000. Itis expected that revenues will be $18,000 annually.There will be annual operating expenses of $17,000.At the end of the 9-year life of the project, there is asalvage value of $25,000. Use a MARR of 5%.Perform a PW (present worth) analysis. What is thePW of the project?Question 2 Part C: Provide the PW value of theproject. Enter your answer in the form: 12345

"Since you have asked multiple questions, we will solve the first question for you. If you want any…

A $200,000 loan is to be repaid in equal yearly payments over 27 years at an interest rate of 3.5% compounded annually. Question 3 Part B: How much of the 8th payment is applied to the interest? Enter your answer in the form: 12345.67

A $200,000 loan is to be repaid in equal yearly payments over 27 years at an interest rate of 3.5% compounded annually. Question 3 Part B: How much of the 8th payment is applied to the interest? Enter your answer in the form: 12345.67

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The company you work for wants to start a new
project. The initial cost of the project is $120,000. It
is expected that revenues will be $18,000 annually.
There will be annual operating expenses of $17,000.
At the end of the 9-year life of the project, there is a
salvage value of $25,000. Use a MARR of 5%.
Perform a PW (present worth) analysis. What is the
PW of the project?
Question 2 Part C: Provide the PW value of the
project. Enter your answer in the form: 12345

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