Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 3, Problem 20P
To determine

Calculate the present worth.

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Company A plans to set aside $150,000 now for possibly replacing its large synchronous refiner motors in the future. If the replacement is expected to take place in 3.5 years, how much will the company have in its investment set-aside account? Assume the rate of return is 10% per year compounded quarterly.
Calculate the present worth of 10 uniform payments of $8000 that begin 1 year from now at an interest rate of 10% per year.
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 $61,615

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Basics Of Engineering Economy

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