Problem 2 (10 marks):For the cash flows shown below, find the equivalent annual worth. Takei=12% per year.80-2008080R4040401 235678 9 10-1011 12 F-10-10-10 -10A-10

Thus, the equivalent annual worth (EAW) is approximately −12.82 per year.The cash flows have a…

Answered: Problem 2 (10 marks): For the cash…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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ENGINEERING ECONOMICS Show complete solution in a paper.
A transit system is considering buying 6 more buses to provide better service. It will cost $100,000 for buying a new bus and $15,000 per year for maintenance and operation for the following 8 years. If the city’s MARR is 8%, what is the equivalent uniform annual cost of this project? Assume the bus has no value at the end of 8 years.
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Engineering Econ HW3 Q2
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A public-private initiative in Texas will significantly expand the wind-generated energy through- out the state. The cash flow for one phase of the project involving Central Point Energy, a trans- mission utility company, is shown. Given reinvestment rate of 14% per year for excess funds and 10 % per year for borrowing rate for extra funds, determine: given MARR = 12% Year Net cash flow 0. -50000 1 +22000 +38000 3. -2000 4 -1000 +5000 a) How many number of ROR values is expected and why? b) Calculate the external rate of return (MIRR). c) Is the project economically viable?
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Problem 2 (10 marks): For the cash flows shown below, find the equivalent annual worth. Take i=12% per year. 80 -200 80 80 R 40 40 40 1 2 3 5 6 7 8 9 10 -10 11 12 F -10 -10 -10 -10 A -10