Solve the following Nippon Steel's expenses for heating and cooling a large manufacturing facility are expected to increase according to an arithmeticgradient beginning in year 2. If the cost is $550,000 this year (year 0) and will be $550,000 again in year 1, but then it is estimatedto increase by $53,000 each year through year 12, what is the equivalent annual worth in years 1 to 12 of these energy costs at aninterest rate of 10.00% per year?The equivalent annual worth is determined to be $

The problem requires the determination of the Equivalent Annual Worth or sometimes referred to as…

Answered: Nippon Steel's expenses for heating and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The Pedernales Electric Cooperative estimates that the present worth now of income from an investment in renewable energy sources is $21,000,000. There will be no income in years 1 and 2, but in year 3 income will be $425,000, and thereafter it will increase according to an arithmetic gradient through year 15. What is the required gradient if the interest rate is 15% per year? Solve using factors. What is the required gradient? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
A small company heats its building and will spend $9,592 in year 1 on natural gas for this purpose. Cost increases of natural gas are expected to be 9% per year starting year 2. Their maintenance on the gas furnace is going to be $408.25 in the first year and this expense is expected to increase by 15% per year starting year 2. If the planning horizon is 15 years, what is the total annual equivalent expense for operating and maintaining the furnace? The interest rate is 18% per year. (Round to nearest dollar) (a) The total present worth of operating and maintaining the furnace is $ (b) The total annual equivalent expense for operating and maintaining the furnace is $ (Round to nearest dollar)
A small company heats its building and spends $8000 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 10% per year starting one year from now (ie. the first cash flow is $8800 at EOY 1). Their maintenance on the gas furnace is $345 per year, and this is expense is expected to increase by 15% per year starting one year from now. If the planning horizon is 15 years, what is the total annual equivalent expense for operating and maintaining the furnace? Interest rate is 18% per year. please draw the cash flow diagram please follow the instructions to hit up thanks ib advance
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A large automobile manufacturer has developed a continuous variable transmission (CVT) that provides smooth shifting and enhances fuel efficiency by 2 mpg of gasoline. The extra cost of a CVT is $800 on the sticker price of a new car. For a particular model averaging 28 miles per gallon with the CVT, what is the cost of gasoline (dollars per gallon) that makes this option affordable when the buyer’s interest rate is 10% per year? The car will be driven 100,000 miles uniformly over an eight-year period.
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A small company heats its building and spends $8,000 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 10% per year starting one year from now (i.e., the first cash flow is $8,800 at EOY one). Their maintenance on the gas furnace is $345 per year, and this expense is expected to increase by 15% per year starting one year from now. If the planning horizon is 15 years, what is the total annual equivalent expense for operating and maintaining the furnace? The interest rate is 18% per year.
10
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A civil engineer planning for her retirement places 11% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $190,000 and she expects her salary to increase by 5% each year, what will be the future worth of her retirement fund after 14 years provided it earns 11% per year? The future worth of her retirement fund will be $
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