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 37P
To determine

Calculate the Present worth.

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An electronic device is available that will reduce this year’s labor cost by$12543.The equipment is expected to last for eight years. If labor cost increase at an average rate of 7% per year at interest rate is 12% compounded bimonthly. What is the maximum amount that we could justify spending for the device? Send handwritten solutions.
What is the present equivalent of $20,000 to be received in 10 years when the interest rate is 5% per year?
How much would your parents have to deposit each month into an account that grows at a rate of 12% per year, compounded semiannually, if they want to have $80,000 at the end of year 3 to cover part of your college expenses? Assume no interperiod compounding. Also, write the spreadsheet function to display the monthly amount.

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Basics Of Engineering Economy

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