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Single Payment Compound Present Amount Factor Worth Factor (F/P, i, N) (P/F, i, N) 1.0900 0.9174 1.1881 0.8417 1.2950 0.7722 1.4118 0.7084 1.5388 0.6499 1.6771 0.5983 18280 05470 Compound Amount Factor (F/A, i, N) 1.0000 2.0900 3.2781 4.5731 5.9847 7.5233 9 2004 Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) (P/A, i, N) 1.0000 0.9174 0.4785 1.7591 0.3051 2.5313 0.2187 3.2397 0.1671 3.8897 0.1329 4.4859 01087 50330 Capital Recovery Factor (A/P i, N) 1.0900 0.5885 0.3951 0.3087 0.2571 0.2229 1987 More Info First cost Annual The Whirl 2B $98.000 The F $101

Single Payment Compound Present Amount Factor Worth Factor (F/P, i, N) (P/F, i, N) 1.0900 0.9174 1.1881 0.8417 1.2950 0.7722 1.4118 0.7084 1.5388 0.6499 1.6771 0.5983 18280 05470 Compound Amount Factor (F/A, i, N) 1.0000 2.0900 3.2781 4.5731 5.9847 7.5233 9 2004 Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) (P/A, i, N) 1.0000 0.9174 0.4785 1.7591 0.3051 2.5313 0.2187 3.2397 0.1671 3.8897 0.1329 4.4859 01087 50330 Capital Recovery Factor (A/P i, N) 1.0900 0.5885 0.3951 0.3087 0.2571 0.2229 1987 More Info First cost Annual The Whirl 2B $98.000 The F $101

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Washington Air Company is considering the purchase of a helicopter for connecting services between the company's base airport and the new intercounty airport being built about 30 miles away. It is believed that the chopper will be needed only for eight years until the Rapid Transit Connection is phased in. The estimates on two types of helicopters under consideration, the Whirl 28 and the ROT 8, are given in the table below. Assuming that the Whirl 28 will be available in the future with identical costs, what is the annual cost advantage of selecting the ROT 8? (Use an interest rate of 9%.) Click the icon to view the estimates on two types of helicopters under consideration. Click the icon to view the interest factors for discrete compounding when i=9% per year. C.... The annual cost advantage of selecting the ROT 8 is $. (Round to the nearest dollar. More Info Single Payment Compound Amount Factor Compound Amount Factor (F/P, i, N) (F/A, i, N) 1.0900 1.0000 - X 1.1881 2.0900 1.2950 3.2781 1.4116 4.5731 1.5388 5.9847 7.5233 9.2004 1.6771 1.8280 1.9926 2.1719 The Whirl 2B $96,000 $4,000 $11,000 4 11.0285 13.0210 2.3874 15.1929 N 1 2 3 4 5 67899 10 Present Worth Factor (P/F, i, N) 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470 0.5019 0.4804 0.4224 Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) (P/A, i, N) 1.0000 0.9174 0.4785 1.7591 0.3051 2.5313 0.2187 3.2397 0.1671 3.8897 0.1329 4.4859 0.1087 5.0330 0.0907 5.5348 0.0768 5.9952 0.0658 6.4177 Capital Recovery Factor (A/P, i, N) 1.0900 0.5685 0.3951 0.3087 0.2571 0.2229 0.1987 0.1807 0.1888 0.1558 X More Info First cost Annual maintenance Salvage value Useful life in years D The ROT 8 $101,000 $9,500 $18,000 8
Transcribed Image Text:Washington Air Company is considering the purchase of a helicopter for connecting services between the company's base airport and the new intercounty airport being built about 30 miles away. It is believed that the chopper will be needed only for eight years until the Rapid Transit Connection is phased in. The estimates on two types of helicopters under consideration, the Whirl 28 and the ROT 8, are given in the table below. Assuming that the Whirl 28 will be available in the future with identical costs, what is the annual cost advantage of selecting the ROT 8? (Use an interest rate of 9%.) Click the icon to view the estimates on two types of helicopters under consideration. Click the icon to view the interest factors for discrete compounding when i=9% per year. C.... The annual cost advantage of selecting the ROT 8 is $. (Round to the nearest dollar. More Info Single Payment Compound Amount Factor Compound Amount Factor (F/P, i, N) (F/A, i, N) 1.0900 1.0000 - X 1.1881 2.0900 1.2950 3.2781 1.4116 4.5731 1.5388 5.9847 7.5233 9.2004 1.6771 1.8280 1.9926 2.1719 The Whirl 2B $96,000 $4,000 $11,000 4 11.0285 13.0210 2.3874 15.1929 N 1 2 3 4 5 67899 10 Present Worth Factor (P/F, i, N) 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470 0.5019 0.4804 0.4224 Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) (P/A, i, N) 1.0000 0.9174 0.4785 1.7591 0.3051 2.5313 0.2187 3.2397 0.1671 3.8897 0.1329 4.4859 0.1087 5.0330 0.0907 5.5348 0.0768 5.9952 0.0658 6.4177 Capital Recovery Factor (A/P, i, N) 1.0900 0.5685 0.3951 0.3087 0.2571 0.2229 0.1987 0.1807 0.1888 0.1558 X More Info First cost Annual maintenance Salvage value Useful life in years D The ROT 8 $101,000 $9,500 $18,000 8
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