Don't use Ai and chatgpt.Answer in step by step with explanation !Required informationThe Pedernales Electric Cooperative estimates that the present worthnow of income from an investment in renewable energy sources is$14,000,000. There will be no income in years 1 and 2, but in year 3income will be $950,000, and thereafter it will increase according toan arithmetic gradient through year 15.What is the required gradient if the interest rate is 15% per year? Solve using factoThe required gradient is $ 73000 X

1. Understanding the Arithmetic Gradient SeriesThe present worth (PWPWPW) for an arithmetic gradient…

Answered: ! Required information The Pedernales…

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

Example 1.4: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 S2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of 42 $3000 per year for the following 3 years. How would the cash flow diagram appearif i 8.5% per year?, Assume the F equal $13,000 find the P(Present worth)
Q) 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 $200,000 and she expects her salary to increase by 4% each year, what will be th future worth of her retirement fund after 14 years provided it earns 8% per year? Solve it correctly. Typed or handwriting with concept use. Not solve in excel works.
Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual withdrawals of $2000 can be made before depleting the funds. If the first withdrawal is made in year 1 after the deposit and if the bank provides an interest rate of 5% per year, how much money should be deposited now? What if Troy decides to withdraw all that he has deposited in the bank now, 5 years later, how much money should he expect to get with an interest rate of 5%? I 2.
It is estimated that a copper mine will produce 10,000 tons of ore during the coming year. Production is expected to increase by 5% per year thereafter in each of the following six years. Profit per ton will be $14 for years one to seven. a. Draw a cash flow diagram for this copper mine operation from the company's viewpoint. b. If the company can earn 10% per year on its capital, what is the equivalent of the coppermines cashflow in year seven?
Apple Computer wants to have $2.1 billion available 5 years from now in order to finance initial production of a device that applies IOT technology for home use. The company expects to set aside uniformly increasing amounts of money each year to meet its goal, starting with $100 million at the end of year 1. Find present worth 1 through 5 andfind future worthat the end of year 5 using excel function. Howmuch will the constant increase, G, have to be each year at a rate of return of 18% per year? Try your skill by using the Goal Seek tool to find the required gradient. Start the evaluation with G = $50 million per year.
If your credit card calculates interest based on17.85% APR, compounded monthly:(a) What are your monthly interest rate and annualeffective interest rate?(b) If your current outstanding balance is $2,500 andyou skip payments for two months, what wouldbe the total balance two months from now?
DRAW ALL CASH FLOW DIAGRAMS 1. Barbara wants to triple the money currently in her account that earns 3.5% per year interest. How long does she need to wait? 2. Joe deposits S8,000 right now and another $3,000 5 years from now. How much money will be in the account 12 years from now? Rate is 4% per year 3. Joe (the same one above) deposits $8,000 now and withdraws $3,000 5 years from now. How much money will be in the account 12 years from now? 4. Jane deposits $2,500 into an account that carns 4.5% per year. 3 years later, the interest rate goes up to 6.5% How much money she will have 8 years after the initial investment? 5. Tim starts his freshman year and would like to take a trip to Europe upon graduation that will cost $5,600. How much he should be saving every year, including his senior year to be able to afford this trip. His bank account earns 4.5% per year interest.
2. What is the future equivalent of Php400000 invested at 3% simple interest per year for 5/4 years?
When you take your ﬁrst job, you decide to start saving right away for yourretirement. You put $ 5,000 per year into the company’s 401(k) plan, whichaverages 8% interest per year. Five years later, you move to another job andstart a new 401(k) plan. You never get around to merging the funds in the twoplans. If the ﬁrst plan continued to earn interest at the rate of 8% per year for 35 years after you stopped making contributions, how much is the account worth?
Explain, Engineering Econ
Use factor method
7. after a lengthy meeting with the marketing team about a new product being introduced, your boss asks you to look into the project. the marketing team is estimating a 15 yer profit of $220,000 (annuity). That amount is expected to grow by an additional $25,000 (gradient) each year through year 5, level off at year five's amount through year 10, then decrease by $15,000 per year (decreasing gradient) through year 15. You determine that the initial cost of the production system will be $1,600,000. What is the PW of this project if the MARR is 25%? Enter your answer to the nearest whole dollar amount

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS