EBK ENGINEERING ECONOMY
EBK ENGINEERING ECONOMY
8th Edition
ISBN: 8220103675437
Author: Blank
Publisher: YUZU
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Chapter 1, Problem 26P
To determine

Draw the cash flow diagram.

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a) Cash Flow Diagram b) manual solution Company A plans to get a loan that will be repaid with uniform payments of $30,000 over 20 years beginning 5 years from the granting of the loan. How much would the bank loan Company A if the interest rate is 10% per year?
An A&E firm planning for a future expansion deposited $40,000 each year for 5 years into a sinking (investment) fund that was to pay an unknown rate of return. If the account had a total of $451,000 immediately after the fifth deposit, what rate of return did the company make on these deposits?
A wind turbine engineering firm has both the experience and an undeveloped plan for a new and more efficient design. A manufacturer has offered to pay the firm $2,000,000 for a working prototype, with complete documentation, 3 years from today. The turbine design firm wants to earn 22% per year on its money. How much can the turbine design firm afford to invest, expressed as if its entire investment were to take place today?
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