Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 4, Problem 13P
To determine
Calculate the present worth.
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Chapter 4 Solutions
Basics Of Engineering Economy
Ch. 4 - State two conditions under which the do-nothing...Ch. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - The costs associated with manufacturing a...
Ch. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Two mutually exclusive projects have the estimated...Ch. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - The manager of engineering at the 900-megawatt...Ch. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Three different plans were presented to the GAO by...Ch. 4 - The U.S. Army received two proposals for a turnkey...Ch. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63APQCh. 4 - Prob. 64APQCh. 4 - Prob. 65APQCh. 4 - Prob. 66APQCh. 4 - Prob. 67APQCh. 4 - Prob. 68APQCh. 4 - Prob. 69APQCh. 4 - Prob. 70APQCh. 4 - Prob. 71APQ
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- Choose the formula that you will use for the following case: A major repair on the suspension system of a 5-year-old car cost $2000. The cost of periodic maintenance has been $800 every 2 years. If the owner donates the car to charity after 8 years of ownership, what is the quivalent annual cost of the repair and maintenance in the 8-year period of ownership? Use an interest rate of 8% per year, and assume that the owner paid the $800 maintenance cost immediately before donating the car in year 8. AW = -2000 (A/P, 8%, 8) - 800 (A/P, 8%, 2) - 800 (A/P,8%, 4) - 800 (A/P, 8%, 6) - 800 (A/P,8%, 8) PW = -2000 (P/A, 8%, 8) - 800 (P/A, 8%, 2) - 800 (PIA, 8%, 4) - 800 (P/A, 8%, 6) - 800 (P/A, 8%, 8) PW = -2000 (P/F, 8%, 8) - 800 (P/F, 8%, 2) - 800 (P/F, 8%, 4) - 800 (P/F, 8%, 6) - 800 (P/F, 8%, 8) AW = -2000 (A/F, 8%, 8) - 800 (A/F, 8%, 2) - 800 (A/F,8%, 4) - 800 (A/F, 8%, 6) - 800 (A/F,8%, 8)arrow_forwardENGINEERING ECONOMICS Construct a cash fl ow diagram for the following cash flows: $25,000 outflow at time 0, $9000 per year inflow in years 1 through 5 at an interest rate of 10% per year, and an unknown future amount in year 5.arrow_forwardProfit and loss (in $1000 units) associated with the sale of a vision-guided machine tool loading system and the resulting NCF amounts are recorded. (a) Use sign-change rules to determine the possible number of i* values. (b) Find all i* values between 0 and 100%. (c) If the required MARR for the company is 15% per year, how small can the gradient be for years 3 through 6? Year Cash Flow, $ 0 −5,000 1 −10,100 2 4,500 3 6,500 4 8,500 5 10,500 6 12,500arrow_forward
- ENGINEERING ECONOMICS provides complete solution and cash flow diagramarrow_forwardThe highway department expects the cost of maintenance of a piece of heavy construction equipment to be 5000 OMR in year 1, to be 5500 OMR in year 2 and to increase annually by 500 OMR through year 10. At an interest rate of 10% per year, determine the present worth of maintenance cost. Also show the cash flow diagramarrow_forwardA recently hired chief executive officer wants to reduce future production costs to improve the company's earnings, thereby increasing the value of the company's stock. The plan is to invest $92,000 now and $66,000 in each of the next 4 years to improve productivity. By how much must annual costs decrease in years 5 through 11 to recover the investment plus a return of 9% per year? The annual cost decreases by $ 83,180arrow_forward
- CTX makes E-devices and planning to expand its production facility at a cost of 1.5 million one year from now. But a subcontractor who needs work has offered to do the job for 890,000 pesos if the company will do the expansion now instead of 1 year from now. How much of a discount is the company getting, if the interest rate is 15% per year?arrow_forwardDurban Moving and Storage wants to have enough money available 5 years from now to purchase a new tractor-trailer. If the estimated cost is $250,000, how much should the company set aside each year if the funds earn 9% per year?arrow_forwardA recently hired CEO (chief executive officer)wants to reduce future production costs to improve the company’s earnings, thereby increasing the value of the company’s stock. The plan is to invest $70,000 now and $50,000 in each of the next 2 years to improve productivity. By how much must annual costs decrease in years 3 through 10 to recover the investment plus a return of 15% per year?arrow_forward
- The National Highway Traffic Safety Administration raised the average fuel efficiency standard to 35.5 miles per gallon for cars and light trucks bythe year 2016. The rules will cost consumers an average of $434 extra per vehicle in the 2012 model year. If a person purchases a new car in 2012 and keeps it for 5 years, how much must be saved in fuel costs each year to justify the extra cost? Use an interest rate of 8% per yeararrow_forwardENGINEERING ECONOMICS provide cash flow diagram Metso Automation, which manufactures addressable quarter- turn electric actuators, is planning to set aside $100,000 now and $150,000 one year from now for possible replacement of the heating and cooling systems in three of its larger manufacturing plants. If the replacement won't be needed for 4 years, how much will the company have in the account, if it earns interest at a rate of 8% per year?arrow_forwardA company expects the cost of equipment maintenance to be $5,000 in year one, s$5,500 in year two, and amounts increasing by $500 per year through year 10. At an interest rate of 10% per year, the present worth of the maintenance cost is nearest to A) $42,170 B $51,790 $46,660 D) $38,220arrow_forward
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