EBK ENGINEERING ECONOMY
8th Edition
ISBN: 8220103675437
Author: Blank
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 21P
To determine
Calculate the equivalent annual value.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Mr. Smith has saved $1969 each year for 20 years. A year after the saving period ended, Mr. Smith withdrew $7365 each year for a period of 5 years. In the sixth and seventh years, he only withdrew $5136 per year. In the eighth year, he decided to withdraw the remaining money in his account. If the interest rate was 6.41% per year throughout the whole period, what was the amount he withdrew at the end of the eighth year?
am 1
5
20124-48
Saved
Turik Electronics manufactures microprocessor-based soft starters that use thyristors for controlled reduced voltage during starting
and stopping. The company is planning a production-line expansion that will cost $1.8 million. If the company uses a minimum
attractive rate of return of 15% per year, what is the equivalent annual cost in years 1 through 5 of the investment? (Enter your answer in
dollars and not in millions of dollars.)
The equivalent annual cost is $
A rotary engine is the essence of a vertical takeoff and landing (VTOL) personal aircraft known as the Moller Skycar M400. It is a flying car known as a personal air vehicle (PAV) and it is expected to make its first untethered flight in 2020. The PAV has been under development for 30 years at a total cost of $100 million. Assuming the $100 million was spent in an equal amount each year, determine the future worth at the end of the 30-year period at an interest rate of 10% per year.
Chapter 2 Solutions
EBK ENGINEERING ECONOMY
Ch. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - How much money should a bank be willing to loan a...Ch. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - How much could BTU Oil & Gas Fracking afford to...
Ch. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Labco Scientific sells high-purity chemicals to...Ch. 2 - Labco Scientific sells high-purity chemicals to...Ch. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - NMTeX Oil owns several gas wells in Carlsbad, NM....Ch. 2 - Prob. 32PCh. 2 - Prob. 33PCh. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 36PCh. 2 - Prob. 37PCh. 2 - Prob. 38PCh. 2 - Prob. 39PCh. 2 - Prob. 40PCh. 2 - Prob. 41PCh. 2 - Prob. 42PCh. 2 - Prob. 43PCh. 2 - Prob. 44PCh. 2 - Prob. 45PCh. 2 - Prob. 46PCh. 2 - Prob. 47PCh. 2 - Prob. 48PCh. 2 - Prob. 49PCh. 2 - Prob. 50PCh. 2 - Prob. 51PCh. 2 - Prob. 52PCh. 2 - Prob. 53PCh. 2 - Prob. 54PCh. 2 - Prob. 55PCh. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Prob. 61ESCh. 2 - Prob. 62ESCh. 2 - Prob. 63ESCh. 2 - Prob. 64ESCh. 2 - Prob. 65ESCh. 2 - Prob. 66APQCh. 2 - Prob. 67APQCh. 2 - Prob. 68APQCh. 2 - Prob. 69APQCh. 2 - Prob. 70APQCh. 2 - Prob. 71APQCh. 2 - Prob. 72APQCh. 2 - Prob. 73APQCh. 2 - Prob. 74APQCh. 2 - Prob. 75APQCh. 2 - Prob. 76APQCh. 2 - Prob. 77APQCh. 2 - Prob. 78APQCh. 2 - Prob. 79APQCh. 2 - Prob. 80APQCh. 2 - Prob. 1CSCh. 2 - Prob. 2CSCh. 2 - Prob. 3CSCh. 2 - Prob. 4CSCh. 2 - Prob. 5CS
Knowledge Booster
Similar questions
- U.S. Steel is planning a plant expansion that is expected to cost $13 million.How much money in total must the company set aside now to have the required money in two years?two years? The equity funds earn interest at 12% per year, with continuous compounding.Answer: $10226163.arrow_forwardHealth informatics is making use of monitoring devices, microelectronic mechanical systems, and wireless integrated microsystems (WIMS). Monitoring of patients, alerting health professionals when a patient needs attention, and even automatically releasing drugs as needed, are becoming possible through engineering. If the cost savings in a local healthcare center is estimated to be $20,000,000 during the 7th year from now, what investment today would be justified for just that one year's savings if the time value of money is 12% per year?arrow_forward2. If a Plastics company purchases a new building now for $1.3 million for its corporate headquarters, what must the building be worth in 10 years? The company expects all expenditures to earn a rate of return at least 18% per year.arrow_forward
- What is the present value (PV) of $100,000 received six years from now, assuming the interest rate is 8% per year?arrow_forwardCentrum Water & Gas provides standby power to pumping stations using diesel-powered generators. An alternative is the use of natural gas to power the generators, but it will be a few years before the gas is available at remote sites. Centrum estimates that by switching to gas, it will save $15,000 per year, starting 3 years from now through the end of year 20. At an interest rate of 8% per year, determine the present worth of the projected savings.arrow_forwardA large electronic retailer is considering the purchase of software that will minimize shipping expenses in its supply chain network. This software, including installation and training, would be a $10-million investment for the retailer. If the firm’s effective interest rate is 15% per year and the life of the software is four years, what annual savings in shipping expenses must there be to justify the purchase of the software?arrow_forward
- SMS Inc. wants to have enough money to purchase a new tractor-trailer in 5 years. If the unit will cost $500,000, how much should the company set aside each year (starting at the end of year 1 and each year until year 5) if the account earns a compound interest of 12% per year? (All the alternatives presented below were calculated using compound interest factor tables including all decimal places) $283,700 $138,705 $78,705 $61,615arrow_forward1. John Doe Co., a company that makes tractors, budgeted $75,000 per year to pay for certain components over the next 6 years. If the company expects to spend $16,000 in year 1, how much of a uniform (arithmetic) increase each year is the company expecting in the cost of this part? Assume the company uses an interest rate of 10 % per year.arrow_forwardOn the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to be able to withdraw $4000 from the fund on his 18th birthday, again on his 19th birthday , again on his 20th birthday ,and again on 21st birthday. If the fund earns interest at 9% per year ,compounded annually ,how much should the father deposit at the end of each year, up through the 17th year ?arrow_forward
- You borrowed $100,000 at 6% per year compounded monthly for 48 months.Which is the number of first month where the outstanding loan balance is less than $40,000?arrow_forwardA company had replace one of its machine every five years with an initial cost of RM 18,000. Calculate how much money that the company has to save every month so that it can obtain RM 18,000 within five years if the interest rate is 6% per year compounded every month?arrow_forwardYou've decided you will put $300 in the bank in year 1 and increase the deposit amount every year by $50 for twenty years (last deposit in year 20). What is the present worth of that money now if the interest rate is 4% per year?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education