A mechanical consulting company is examining its cash flow requirements for the next 10 years. The company expects to replace office machines and computer equipment at various times over the 10-year planning period. Specifically, the company expects to spend $5000 2 years from now, $5000 6 years from now, and $7000 8 years from now. At an interest rate of 13% per year, determine: a) The present worth of the planned expenditure for only the $5000 in year 2 is $ Leave your answer as a positive value and to the nearest $100 dollar. b) The net present worth of all planned expenditures is $ Leave your answer as a positive value and to the nearest $100 dollar.

A mechanical consulting company is examining its cash flow requirements for the next 10 years. The company expects to replace office machines and computer equipment at various times over the 10-year planning period. Specifically, the company expects to spend $5000 2 years from now, $5000 6 years from now, and $7000 8 years from now. At an interest rate of 13% per year, determine: a) The present worth of the planned expenditure for only the $5000 in year 2 is $ Leave your answer as a positive value and to the nearest $100 dollar. b) The net present worth of all planned expenditures is $ Leave your answer as a positive value and to the nearest $100 dollar.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Improvised explosive devices (IEDs) are responsible for many deaths in times of strife and war. Unmanned ground vehicles (robots) can be used to disarm the IEDs and perform other tasks as well. If the robots cost $165,000 each and the military arms unit signs a contract to purchase 3,500 of them now and another 9,000 one year from now, what is the equivalent annual cost of the contract over a 10- year period at 9% per year interest? The equivalent cost of the contract is determined to be $2254312500
A construction management company is examining its cash flow requirements for the next few years. The company expects to replace software and in-field computing equipment at various times. Specifically, the company expects to spend S6,000 1 year from now, $10,000 3 years from now, and $11.000 each year in years 6 through 10. What is the future worth in year 10 of the planned expenditures, at an interest rate of 9% per year? The future worth is determined to be $[
The cash flow associated with a strip mining operation is expected to be $200,000 in year 1, $180,000 in year 2, and amounts decreasing by $20,000 per year through 8. At an interest rate of 12% per year, what is the equivalent annual cash flow.
A construction management company is examining its cash flow requirements for the next few years. The company expects to replace software and in-field computing equipment at various times. Specifically, the company expects to spend $6,000 1 year from now, $10,000 3 years from now, and $14,000 each year in years 6 through 10. What is the future worth in year 10 of the planned expenditures, at an interest rate of 12% per year? The future worth is determined to be $
How much must you deposit each year into your retirement account starting now and continuing through year 15 if you want to be abl to withdraw $100,000 per year forever, beginning 34 years from now? Assume the account earns interest at 15% per year. The amount to be deposited is determined to be $
11
What is the equivalent annual cost in years 1 through 11 of a contract that has a first cost of $70,000 in year 0 and annual costs of $17,000 in years 3 through 11? Use an interest rate of 14% per year. The equivalent annual cost is determined to be
What is the equivalent annual cost in years 1 through 7 of a contract that has a first cost of $65,000 in year 0 and annual costs of $18,000 in years 3 through 7? Use an interest rate of 14% per year. The equivalent annual cost is determined to be $|
Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $80,000 per year. A clever industrial engineer found that by spending $18,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $54,000 next year and $49,000 in years 2 through 5. Using an interest rate of 15% per year, determine the present worth of the savings due to the reconfiguration. The present worth of the savings is determined to be $