Problem #2Solve for the following:1) Present worth equivalence2) Annual worth equivalence spread from years 1 to 103) Future worth equivalence at the end of year 84) Future worth equivalence at the end of year 10i= 10%10A = $3000P=? Problem #4Solve for the following:1) Present worth equivalence2) Annual worth equivalence spread from years 1 to 103) Future worth equivalence at the end of year 34) Future worth equivalence at the end of year 8i = 8%10$1000$1000(1.11)$1000(1.11)P= ?$1000(1.11)$1000(1.1)*$1000(1.11)$1000(1.11)

Problem 2 2) Annual Worth equivalence spread(1 to 10)=11348.05*(A/P * 10% *10)11348.5 *…

Answered: Future worth equivalence at the end of…

Business

Economics

Future worth equivalence at the end of year 8 Future worth equivalence at the end of year 10 i= 10%

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

It's October 21 and the air conditioner at the Brown household has just gone out. Fortunately, they will not need it again until June 21. After reviewing their finances, it has been determined that they cannot save for this purchase until January (ouch!). If a new air conditioner costs $3,500 and they deposit funds into the account on the 21st day of every month, how much does the family need to save each month? Assume MARR is 1.25% per month and they will not make any deposits in June. O $660 O $680 O $670 O $690
A manufacturing company has requested that $500,000 be spent on software and hardware to improve the efficiency of environmental control systems for the manufacturing process. This is expected to save $10,000 per year for 10 years in energy costs and $700,000 at the end of 10 years in equipment refurbishment costs. 1) Calculate the present worth at i= 5%? 2) Calculate the present worth at i= 6%? 3) Find the rate of return?
Suppose that annual income from a rental property is expected to start at $1,330 per year and decrease at a uniform amount of $40 each year after the first year for the 15-year expected life of the property. The investment cost is $7,000, and i is 7% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one. Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. The present equivalent of the rental income equals $. (Round to the nearest dollar.) Is this a good investment? Choose the correct answer below. Yes No
Incorrect Question 8 When calculating the Break Even Analysis, one needs to subtract the FW of the cash inflows from the PW of the cash outflows. True False
Charlie has $12,000 to invest for a period of 5 years. The following three alternatives are available to him: Account 1 pays 4.00% for year 1, 5.00% for year 2, 8.00% for year 3, 9.00% for year 4, and 12.00% for year 5, all with annual compounding. • Account 2 pays 12.00% for year 1, 9.00% for year 2, 8.00% for year 3,5.00% for year 4, and 4.00% for year 5, all with annual compounding. Account 3 pays interest at the rate of 7.56183% per year for all 5 years. Based on the available balance at the end of year 5, which alternative is Charlie's best choice? Year 5 Balance, Alternative 1: $ Year 5 Balance, Alternative 2: $ Year 5 Balance, Alternative 3: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is £5.
Find the present value of a PHP 120,000 annuity payable every year for 10 but deferred 3 years. Money is worth 8% effective. PHP 127,201.81 PHP 701,312.03 PHP 637,201.47 PHP 518,911.41 None of the above
What is the equivalent annual cost in years 1 through 8.00 of a contract that has a first cost of $78,000 in year 0 and annual costs of $16,000 in years 3 through 8.00? Use an interest rate of 12.00% per year. (Round the final answer to three decimal places.)
Determine the equivalent value of x from the cash flow indicated in the diagram on the left side. 2 G₁ 7 59 10 i% X
None
What will a $90,000 house cost 10 years from now if the price appreciation for homes over that period .averages 3% compounded annually?
Find the Future Worth (F) of the following geometric series cash flow: 0 1 1000 i = 10% 23 4 1100 1210 g= 10% 10 2,358
You know that paying yourself by depositing money in a savings account is a prudent start to your retirement plan. You determined that, based on your other obligations, you can save 6,375.00 per year via an annual, single year-end deposit. You are 35 years old now, so your money will grow for the next 30 years until you turn 65. You will open a savings account at the Wells Fargo branch near your home. Its savings accounts are paying 6% interest. The following table shows the future value factors for various periods and interest rates: Future Value of an Annuity Factor Year 2% 3% 5% 6% 8% 9% 10% 10 10.950 11.460 12.578 13.180 14.487 15.190 15.937 12 13.412 14.190 15.917 16.870 18.977 20.140 21.384 15 17.293 18.600 21.578 23.270 27.152 29.360 31.772 20 24.297 26.870 33.066 36.780 45.762 51.160 57.274 25 32.030 36.460 47.726 54.860 73.105 84.700 98.346 30 40.567 47.570 66.438 79.060 113.282 136.300 164.491 35 49.994 60.460 90.318 111.430 172.314 215.700…