If an initial investment of $10000 is made in Year 0 at an interest rate of 7%, solve for the value "A" if the investment will yield the payout as described in the cash flow table below. Year 0 1 2 3 4 5 6-10 Cash flow in $ -10,000 0 0 0 1,000 A A Group of answer choices $2,540 $3,107 $3,328 $2,402

If an initial investment of $10000 is made in Year 0 at an interest rate of 7%, solve for the value "A" if the investment will yield the payout as described in the cash flow table below. Year 0 1 2 3 4 5 6-10 Cash flow in $ -10,000 0 0 0 1,000 A A Group of answer choices $2,540 $3,107 $3,328 $2,402

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

Maintenance cost for small bridge with an expected 50 year life are estimated to be $15,000 each year for the first 9 years, followed by a $20,000 expenditure in the year 15 and a $30,000 expenditure in the year 33. If interest rate is at 10% compounded monthly. What is the equivalent present value of the entire maintenance cost of that bridge?What is the equivalent uniform annual cost over the entire-50 year period?
Subject : Engineering Economics Q 1. At the end of 13 years, how much is a $253 initial deposit worth, assuming an annual interest rate of 07 percent compounded (i) Annually? (ii) Semiannually? (iii) Quarterly? (iv) Monthly (v) continuously?
Maintenance cost for small bridge with an expected 50 year life are estimated to be $15,000 each year for the first 9 years, followed by a $20,000 expenditure in the year 15 and a $30,000 expenditure in the year 33. If interest rate is at 10% compounded monthly. What is the equivalent present value of the entire maintenance cost of that bridge? draw the cash flow diagram
If the effective annual interest rate is 10.51% and the nominal annual rate is 10.25%, compounding is: Select one: Oa. Semi-annual O b. Monthly O c. Bi-monthly O d. Continuous O e. Quarterly
The cash flow diagram is independent on the point of view. true or false?
Could anyone help check my answer?
Are the following cash flow diagrams economically equivalent if the interest rate is 15% per year? 0 7M 1 8M 2 ΕΟΥ 6M 3 5M 4 H 0 7M 1 7M 2 ΕΟΥ The left-hand diagram's discounted value at the EOY 0 is $[ M. (Round to three decimal places.) 7M 3 7M 4
For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. You purchase a special equipment that reduces defects by $15,000 per year on an item. This item is sold on contract for the next 5 years. After the contract expires, the special equipment will save approximately $5,000 per year for five years. You assume that the machine has no market value at the end of 10 years. How much can you afford to pay for this equipment now if you require a 12% annual return on your investment?
Solve the following question with complete solution and include cash flow diagram (HANDWRITTEN ONLY) Maintenance cost for small bridge with an expected 50 year life are estimated to be $15,000 each year for the first 7 years, followed by a $20,000 expenditure in the year 16 and a $30,000 expenditure in the year 30. If interest rate is at 10% compounded monthly. What is the equivalent present value of the entire maintenance cost of that bridge? (Round off the interest rate to 5 decimal places) what is the equivalent uniform annual cost over the entire-50 year period?
UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS AND DRAW THE CASH FLOW DIAGRAM. NO LONG EXPLANATION NEEDED. FOLLOW THE INSTRUCTIONS CAREFULLY. Maintenance cost for small bridge with an expected 50 year life are estimated to be $15,000 each year for the first 9 years, followed by a $20,000 expenditure in the year 16 and a $30,000 expenditure in the year 32. If interest rate is at 10% compounded monthly. (Note: Round off the interest rate to five decimal places.) A. What is the equivalent present value of the entire maintenance cost of that bridge? (Round your answer to 2 decimal places.)B. what is the equivalent uniform annual cost over the entire-50 year period? (Round your answer to 2 decimal places.)
Hand written solutions are strictly prohibited.