Find C that makes the two cashflows of Project A & Project B over:5 years to be equivalentProject AProject B$1000 i=10%i=10%$5000 1 2 3 4 50 1 23 4 5$792 O$872 O$972 O$572 O

PW, Project A = 1000 + 500 x P/F(10%, 3) = 1000 + 500 x 0.7513 = 1000 + 375.65 = 1375.65 PW, Project…

Answered: blöi 5 Find C that makes the two cash…

blöi 5 Find C that makes the two cash flows of Project A & Project B over :5 years to be equivalent Project A $1000 i=10% Project B i=10% $500 0 1 2 3 4 5 0 1 2 3 4 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Q3. An individual makes five annual deposit of $2000 in a savings account that pays interest at a…

A: Annual deposit = $2,000Interest rate for first 6 years is 4% andfor next 4 years is 6%

Q: (01) FIND (X) FOR THE SHOWN CASH-FLOW DIAGRAMS. USE: i. = 9%. SHOW CALCULATIONS. 0 2 3 4 250 (each)…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Economics .Compute for the IRR on below given information. Year O Year 1 Year 2 Year 3 -$100,000…

A: Let r be the IRR, such that, NPV = 0 = C0(1+r)0+C1(1+r)1+C2(1+r)2+C3(1+r)3 0 =…

Q: 8. Each year Exxon-Mobil expends large amounts of funds for mechanical safety features throughout…

A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: If money is worth 8%, determine the present value of a perpetuity of P1,000 payable annually, with…

A: Option a is right answer P9, 187.87

Q: rs. Gardner borrowed from a bank an amount of P 43,200 and promised to pay it at the end of 142…

A: Given that, Mrs. Gardner borrowed from a bank an amount of P 43,200 and promised to pay it at the…

Q: Maintenance cost for a small bridge with an expected 60 - year life are estimated to be $ 1,000 each…

A: The term "future capital maintenance" refers to the costs a business anticipates to expand in the…

Q: (engineering economic) The $56000 loan bears interest at 12% annually and must be repaid in uniforrm…

A: Loan interest = $56000 Interest rate annual = 12% Annual installment till = 6th years

Q: the given cash flow diagram of the uniform gradient in a cash flow? Rs. 350,000 Rs. 325,000 Rs.…

A: Gradient is the change in the cash flow from one year to year. If the change is by the same amount…

Q: A) A manufacturer has a monthly fixed cost RM100 000 and a production cost of RM14 for each unit…

A: ***Since the student has posted multiple unrelated questions, so the expert is required to solve…

Q: how your solution A deposit of $20,000 now at an interest rate of 10% per year will accumulate in…

A: Given: The present value of the deposit is = $20,000 The interest rate is = 10% Years = 10 To Find:…

Q: Q1): A company is planning to expand its business after 5 years from now. The expected The company…

A: Here we calculate the difference in amounts company arrange after 5 year by using the given…

Q: ENGINEERING ECONOMICS It costs P500,000 at the end of each year to maintain a section of Kennon…

A: Compound interest is also referred to as "interest that is not simple." Compound interest does not…

Q: 21) You have taken out a 5-year, $17,000 car loan with Caddy Shark Loan Corp. The nominal interest…

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

Q: A large shipping compony has' demarcated funds for the following planned expenditures: • €30 million…

A: (2) Here, The investment done for new storage space in munich = € 30 million investment on…

Q: A bond with a par value of P10,000.00 and with a bond rate of 10% payable annually is sold now for…

A: When it comes to the world of banking and business, the term "redemption" has a variety of meanings.…

Q: Make the following flow DIAGRAM: -50,000 - 1,000 (P / A, 6%, 2) (P / F, 6%, 1) + 5,000 (P / A, 6%,…

A: Cash flow diagram refers to a graphical representation of cash flows over a time horizon. Upward…

Q: The future value for the given cash flow is: = 5% $300 S400 S000 Select one: a. $443.1 b. $508 c.…

A: Formula: Future value = Present value * (1+ interest rate)time period

Q: Problem 1 An interest rate equal to 7% compounded annually: (a) If $20,000 is borrowed for 5 years…

A: Problem 1 (a) Given, Rate of interest (r)= 7% compounded annually = 0.07 Money borrowed (P)=…

Q: The equivalent compounding discount rate to the 5% compounding interest rate if the time of the…

A: Given an investment with a compounding interest rate semi-annually for , determine the equivalent…

Q: A deposit of $3111 was invested for 3 years at 3.88% p.a. compounded semi-annually. What is the…

A: The money put into assets or business to generate revenue in the future is known as investment. It…

Q: What is the accumulated value of $200 invested for 12 years at 3.8% p.a. compounded (a) annually?…

A: When current interest is considered with the initial principal amount for a specific period, this is…

Q: Barbara wants to triple the money currently in her account that earns 3.5% per year interest. How…

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

Q: 1. An electric utility investment has a capital cost of $60 million, a term of 8 years, and an…

A: Under the Strata Property Act, strata corporations and sections must have contingency reserve funds…

Q: VALUES & SYMBOLS FOR THE FOLLOWING CASE. A project of 14-year lifecycle, started with an investment…

A: A cash flow diagram is the cash inflow and outflow of a firm in which the revenue generated and…

Q: 1.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000…

A: Since you have posted multiple questions. As per answering guidline, we are supposed to answer only…

Q: ealthy business Mr. Tan wants to start a permanent fund for supporting research directed toward…

A: Capitalized cost (CC) refers to a project which has infinite life and it occurs some expenses every…

Q: m mmm. m Given the cash flows in table below, determine the rate of return. Year Cash Flow…

A: The objective of the question is to calculate the rate of return based on the given cash flows. The…

Q: in Year MJ Corp produces and sells a new model of photoxaltais. (PV). Annual cash flows are shown…

A: Future Value: The future value of annual cash flow or the present cash flow is the amount that…

Q: Subject : Engineering Economics Q 1. At the end of 13 years, how much is a $253 initial deposit…

A: Initial Deposit = $253 Time period = 13Years Interest rate = 7% Formula Used:- Future value. FW…

Q: Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and…

A: First Cost = 50,000 Increase - 6% Time period - 8 year

Q: Are the following cash flow diagrams economically equivalent if the interest rate is 15% per year? 0…

A: The rate of interest i =15% To compare these two cash flows, use present worth analysis. These two…

Question

Find C that makes the two cash
flows of Project A & Project B over
:5 years to be equivalent
Project A
Project B
$1000 i=10%
i=10%
$500
0 1 2 3 4 5
0 1 2
3 4 5
$792 O
$872 O
$972 O
$572 O

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1.

VIEW

Step 2.

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

please solve with full detail so I can understand, Engineering Econ
No exc
Time left 1:29:42 In the following cash flows diagram, Determine the Future Worth at the end of year 12 if the interest rate is 6% 7. $200 $200 $150 $150 $100 $100 3 4 Years Oa $1,445.8 Ob. $1,364 Oc $1,286.8 Od $1,5326 2.
4:09 470 3 of 3 Assignment 2-2022.pdf 420 ct 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 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 2 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. 9. An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 $2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of A2 =…
Please find PW (present worth) for all the cash flow diagrams in the attached picture below:
Referring to the following cumulative cash flow diagram, the FCI is most nearly SM 2M 1M -1M O S2M $1M $750000 O $1.75M To s'NOLLISOd HSV)
Give final answer only
Please find PW (present worth) for all the cash flow diagrams in the attached picture below: FOR PART 2
Please don't use excel and show equations used.
Solve by incremental cashflow then PW = 0. To get the value of i by interpolation. Problem 3: Two plans for a hydroelectric project in Peru have been proposed. The opportunity cost, in soles, of resources is 10 percent. Data on the two alternatives are: System First cost ($/,000,000,000) 300 160 Economic life (years) 40 20 Salvage value ($/,000,000,000) 15 12 Annual benefits (S/.000,000,000) 25 22 Annual costs ($/,000,000,000) 3 1 Using the internal rate of return method, which of the two systems should be chosen or should either be selected?
lhave the solution but I need the way please don't use Excel
please answer all with complete solution, draw the cash flow diagram. thank you... note: do not use excel please. thank youu