Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Question
Chapter 10, Problem 8P
(a):
To determine
Calculate the present worth.
(b):
To determine
Calculate the new benefit cos ratio.
(c):
To determine
Calculate the incremental benefit cos ratio.
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11
Here are the data for an asset that is being considered:
Initial cost=$35,000
Salvage value at 5 years=$5000
Rebuild cost at 3 years=$25,000
Annual net cash flow=$22,000
per year
What is the ROR for this asset? (You can use the excel function "IRR" for this problem)
a)53.0%
b)41.0%
c)43.9%
d)42.8%
Answer the given question. Make sure do not round off answers in the solution, instead just the final answer will be rounded of to two decimal places. 1.
Chapter 10 Solutions
Engineering Economy
Ch. 10 - The Adams Construction Company is bidding on a...Ch. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - A retrofitted space-heating system is being...Ch. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10P
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