The cost of a fence that can detect poacher intrusion into a National Wildlife Preserve is $2.400 million per mile. If the effective life ofthe fence is 9.00 years, determine the equivalent annual cost of a/an 10.00-mile long fence at an interest rate of 13.00% peryear. (Round the final answer to three decimal places.)The equivalent annual cost is $4422949

Step 1: Calculate the total cost of the fenceFirst, let's determine the total cost of the 10-mile…

Answered: The cost of a fence that can detect…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Spivey just won the Powerball Ilottery! The $25,000,000 jackpot will be paid in 10 annual installments of $2,500,000 each, with the first payment to be paid immediately. Spivey's opportunity cost of capital (interest rate) is 4% per year. What is the present equivalent of Spivey's lottery winnings at the time of the first payment?
Sonia’s house is worth $350,000. Homes have been appreciating at 5.7% per year for several years. If this trend continues, what will Sonia’s house be worth 15 years from now?
Suppose that the installation of Low-Loss thermal windows is expected to save $450 per year on your home heating bill. If you expect to occupy your home for 40 years and could earn 6% per year on other investments, how much can you for the pay now to have the new windows installed?
A small company heats its building and will spend $8,640in year 1 on natural gas for this purpose. Cost increases of natural gas are expected to be8%per year starting year 2. Their maintenance on the gas furnace is going to be$397.60in the first year and this expense is expected to increase by12%per year starting year 2. If the planning horizon is15 years, what is the total annual equivalent expense for operating and maintaining the furnace? The interest rate is 15%per year (a) The total present worth of operating and maintaining the furnace is $ (Round to nearest dollar) (b) The total annual equivalent expense for operating and maintaining the furnace is $ (Round to nearest dollar)
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.
If we are charged $50 on a $500 loan that is due in 1 month, what is the effective annual rate? (ieff) A 100% B 120% C 180% D 200% E 213% F 223% G 243% H 263%
Peter has decided to make a deposit of $500 each quarter (starting next quarter) for 5 years. If the interest rate is 16%/year compounded monthly, the closest equivalent future value right after his last deposit is 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.
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?
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)
An employee earning P15,000 a month can only afford to buy a car requiring a down payment of P15,000 and monthly amortization of not more than 20% of his monthly salary. What would be the maximum cash value of a car he can purchase if the seller will agree to a down payment of P15,000 and the balance payable in 3 years at 20% per year payable on a monthly basis? The first payment will be due at the end of the first month.
A retail outlet is being designed in a strip mall in Nebraska. For this outlet, the installed fiberglass insulation to protect against heat loss in the winter and heat gain in the summer will cost an estimated $110,000. The annual savings in energy due to the insulation will be $19,000 at EOY one in the 8-year life of the outlet, and these savings will increase by 15% each year thereafter. If the annual interest rate is 20%, is the cost of the proposed amount of insulation justified? Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. Click the icon to view the interest and annuity table for discrete compounding when ;=20% per year. The present equivalent of energy savings is $ Is the cost of the proposed amount of insulation justified? No O Yes (Round to the nearest dollar.)
A retail outlet is being designed in a strip mall in Nebraska. For this outlet, the installed fiberglass insulation to protect against heat loss in the winter and heat gain in the summer will cost an estimated $90,000. The annual savings in energy due to the insulation will be $20,000 at EOY one in the 9-year life of the outlet, and these savings will increase by 12% each year thereafter. If the annual interest rate is 15%, is the cost of the proposed amount of insulation justified?

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