State the value of C that makes the following two cash flow transactions eco- nomically equivalent at an interest rate of 12% $100 $100 0 (a) $29.365 (b) $33.598 (c) $47.433 (d) $43.796 $50 $50 I 2 3 0 C 4 3C 3C A A 1 ---~ 2 1 I 3 C A

State the value of C that makes the following two cash flow transactions eco- nomically equivalent at an interest rate of 12% $100 $100 0 (a) $29.365 (b) $33.598 (c) $47.433 (d) $43.796 $50 $50 I 2 3 0 C 4 3C 3C A A 1 ---~ 2 1 I 3 C A

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Find the interest on 6,800.00 for three years at 11% simple interest. A) P2,244.00 B) P9,044.00 C)…

A: The cost of borrowing money or the return on savings are both expressed as interest rates. It is…

Q: (01) FIND (X) FOR THE SHOWN CASH-FLOW DIAGRAMS. USE: i. = 9%. SHOW CALCULATIONS. 0 2 3 4 250 (each)…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: The external reinvestment rate is 10%.

A: CFD diagram 1. Calculate the form of NPV 12% as follows: Find the values:

Q: For a given cash flow project. Find: (a) Future value of the annual payments A=$200 at year n=5 (b)…

A: FV of annual cash flows at year 5 = 200 x F/A(10%, 5) = 200 x 6.1051 = $1,221

Q: $1,000 $1,000 2T $500 $500 4 3. ΕΟΥ ΕΟΥ 3T

A: * SOLUTION :- Given that , Interest rate i = 15%

Q: $3,300 $8 $2,400 $2,400 1. 2 4. End of Year

A: The present worth technique of analysis is an equivalence method in which the cash flows of a…

Q: If money is worth 8%, determine the present value of a perpetuity of P1,000 payable annually, with…

A: Option a is right answer P9, 187.87

Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…

A: semi annual payments = 1000 Time = 3 years Interest rate = 12 % Semi annual rate = 12/2 = 6 %…

Q: Q1. Aling Azon bought 3 sets of air conditioning unit for her three bedrooms. She agreed to pay…

A: Given: Down payment=Php 5000 Monthly Installments=Php 3000

Q: You currently have $250,000 in your retirement account. What equal ann each year for the next 13…

A: Given the present value = $250000 Time, n = 13 years Interest rate, r = 8% Future value = $37000

Q: 9 - What is the total amount of money to be repaid at the end of 1 year for a loan of 190 000 liras…

A: Interest rate is the amount of interest paid on each unit of loan taken. For example, if the…

Q: How much do you need to deposit today (P) to withdraw BD25,000 at n =1, BD3,000 at n=2, and BD5,000…

A: Amount deposited can be calculated by discounting Payment using 10% as discount rate in various…

Q: A company is considering two machines. Machine X has a first cost of $30,000, AOC of $18.000, and 5…

A: Straight line devaluation is the most regularly utilized and direct deterioration strategy for…

Q: The capital recovery cost calculated for the project shown is cash flow diagram in Figure (6) = *…

A: Capital recovery cost (CR) can be calculated by using the following formula.

Q: Assume that $1,000 is deposited today, two years from now, four years fromnow, six years from now,…

A: Given,

Q: 21) You have taken out a 5-year, $17,000 car loan with Caddy Shark Loan Corp. The nominal interest…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Question 8 What is the correct numerical value for the following factor from the compound interest…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…

A: Given: The series of semi-annual payments of = $1,000 Years = 3 The rate of interest is = 12%…

Q: 4. What value of N comes closest to making the upper cash flow diagram (a) equivalent to the one…

A: i = 15% Cash Flow of A = Cash Flow of B

Q: For the cash flow diagram sbown below, the value of x that will make the future worth in year 8…

A: Future value of given cash flow is $147,458 i=10% n=8 years

Q: Inc lass Excercise Савствање PPW = ? 5000 PW=? 5000t (2) 1 Soool (3) Son 2 Pw=n G 9=7%, i=15% 7 500…

A: The Present Worth Analysis is one of the techniques used to assess the project options. The worth of…

Q: A 90 day T-bill with $1,000,000 face value is priced at $997,500. What is its equivalent annual…

A: Answer; Option (d) 1.02% is correct

Q: If an initial investment of $10000 is made in Year 0 at an interest rate of 7%, solve for the value…

A: $3,107.Explanation:Let's calculate the Net Present Value (NPV) for this investment. The NPV…

Q: The equivalent compounding discount rate to the 5% compounding interest rate if the time of the…

A: Given an investment with a compounding interest rate semi-annually for , determine the equivalent…

Q: If a city's current population is 65.000 and compounding at the rate of 5 percent per year, (a) what…

A: Here we calculate the following terms by using the given information and conclude the solution , so…

Q: If you could afford to pay $850 per month for a house mortgage, and you plan on financing it at…

A: Compound interest is usually known to be as the interest which is exactly calculated by multiplying…

Q: You purchased a winning ticket for a $3 million lottery which pays $300,000 immediately and the rest…

A: The accepting of an offer and rejecting it depends on the comparison of the present value of the…

Q: Yéar -$5,000 -$5,000 1 -$3,000 +$2,000 +$4,000 +$2,000 3 +$4,000 +$2,000 4 +$4,000 +$2,000

A: here we calculate the incremental in cashflow and choose the correct option by using the values of…

Q: Problem: What value of T makes these two cash flow diagrams (see figure) economically equivalent at…

A: By equating the P equivalents of the cash-flow charts, we can solve for T. 1000 + 500(NPV at 15% in…

Q: For the cash flows shown in the table, determine the future worth in year 8 at an interest rate of…

A: FV = PV(1+r)n FV = Future Value PV = Present Value r = annual interest rate n = number of periods

Q: Sarah borrows some money to buy a new car. The car dealership allows her to defer payments for 12…

A: Present Value refers to the discounted value of a series of future payments or of a lump sum amount…

Q: What value of T makes these two cash flow diagrams (see figure) economically equivalent at 15%…

A: * SOLUTION :- Given that , Interest rate ( i ) = 15% = 0.15

Q: (3) 9=7%, i=15% Sooo 01 Pw=n + 2 3 4 5 6 789 10

A: A cash flow diagram represents the inflow or the outflow of cash above and below the horizontal line…

Q: Engr. Gundran wishes his son to receive 11.483 10 years from now. What amount should he invest if it…

A: Given:Future value after 10 years = 11,483Interest rate for initial five years = 0.073Interest rate…

Q: Q2. Deposits are to be made to an account as indicated in the table below which bears interest at…

A: Given Interest rate = 10 % cashflows for 5 years therefore future worth of each cashflow = cashflow…

Q: Question 2 Income from recycling the paper and cardboard generated in an office building has…

A: Future value is the value of income at the end of planning horizon. Present value is the value of…

Q: Draw the cash flow diagram from which the following equations are obtained and find the equivalent…

A: In the first equation, it can be seen that a total of 800 is an annuity for 3 years and 500 is an…

Q: What is the future value of an annuity of $10,800 invested every year for the next 11 years starting…

A: Here, P = $10,800 i = 0.096 n = 11 Now, Future Value of Annuity (FVA) is FVA=P x(1+i)n-1i…

Q: Consider the following two mutually exclusi Net Cash Flow End of year Project A Project B - $1,400…

Q: Савстване APW = 1 5000 G 3 500 PW Forth following ID i=100%

A: NOTE: Since you have posted multiple questions, we will provide the solution only to the first…

Q: Edinburgh Newcastle…

A: Pay back Method:Computation of investment = money outflow - Scrap priceThe franchise fees…

Question

2s.6 State the value of C that makes the following two cash flow transactions eco-
nomically equivalent at an interest rate of 12%
$100 $100
(a) $29.365
(b) $33.598
(c) $47.433
(d) $43.796
$50 $50
3
3C 3C
A A
2
3
C
DOCOunt

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Given information

VIEW

Calculation

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

lhave the solution but I need the way please don't use Excel
Engineering Economics
provide cash flow diagram. From the Question, what is the equivalent uniform annual cost over the entire-50 year period?
4. in Year Income, $1000 Cost, $1000 MJ Corp produces and sells a new model of photoxaltais. (PV). Annual cash flows are shown table below. Determine the future worth of the net cash flows at an interest of 10% per year. 8 per year. 1 200 90 2 200 90 3 200 90 4 200 90 5 200 90 6 Don't use excel and please don't upload answers that were already posted 200 90 7 200 90 200 Hide Transcribed Text 4. MJ Corp produces and sells a new model of photovaltaic (PV). Annual cash flows are shown in table below. Determine the future worth of the net cash flows at an interest of 10% 90
Subject: Engineering Economy$200, 000.00 was deposited at an interest rate of 24% compounded semi-annually. After how manyyears will the sum be $621,170.00? Please show solution
what is the answer in 2 decimal places
ENGINEERING ECONOMICS 2. A local firm is establishing a sinking fund for the purpose of accumulating a sufficient capital to retire its outstanding bonds at maturity. The bonds are redeemable in 10 years and their maturity value is P150000. How much should be deposited each year if the fund pays interest at the rate of 3%? Draw a cash flow
24 - What is the total amount of money to be repaid at the end of 1 year for a loan of 175 000 lira withdrawn from the bank for housing need with an annual compound interest of 15%?A) 203 500B) 201 250C) 202 000D) 202 500E) 201 500
3. TOPIC: ENGINEERING ECONOMICS PLEASE ANSWER IN 4 DECIMAL POINTS
With cashflow diagram. An individual makes six annual deposits in a savings account starting one year from now that pays interest at a rate of 10% compounded annually and after the last deposit the interest rate changed to 12% per year compounded annually. Ten years after his last deposit he made a withdrawal $7,000 per year for 8 years from his account. How much would be the six annual deposits? a) 1451 b)1625 c)1738 d)1911
Could anyone help check my answer?
10