At the beginning of 2011, the city council, administrative offices and municipal courts of the city of El Paso, Texas, will adopt a 10-hour workday with four working days a week, from early May to the end of September. The reduced workweek will affect 25% of the 6100 employees and will generate a savings of $42600 per month during those five months due to reduced fuel consumption, facilities and janitorial services. If this work program were to be followed for the next 10 years, what would be the future value of the savings at the end of that time frame (i.e., at the end of 2020)? Use an interest rate of 0.5% per month with monthly compounding for the cash flows. monthly compounding for the year-to-year cash flows; use the annual interest rate with equivalent annual compounding to carry them to the end of 2020.
At the beginning of 2011, the city council, administrative offices and municipal courts of the city of El Paso, Texas, will adopt a 10-hour workday with four working days a week, from early May to the end of September. The reduced workweek will affect 25% of the 6100 employees and will generate a savings of $42600 per month during those five months due to reduced fuel consumption, facilities and janitorial services. If this work program were to be followed for the next 10 years, what would be the
Ans: $2901559.
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Determine the FW of the following engineering project when the MARR is 15% per year. Is the project acceptable? (5.4)
*A negative market value means that there is a net cost to dispose of an asset.
Investment cost Expected life
Market (salvage) value* Annual receipts
Annual expenses
$10,000 5 years -$1,000 $8,000 $4,000
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