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 4, Problem 27P
To determine

Calculate the price per share.

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BROAN Technologies is considering the purchase of an annual maintenance contract for its heating and air conditioning systems. Since this will be a new system, the company plans to begin the contract at the end of year 4 and continue through year 10. The cost of this contract is $4,600 per year and the company's minimum attractive rate of return is 10% per year. a. What will be the present worth of the contract? b. What will be the future worth of the contract? c. If the company wishes to pre-pay the contract with uniform payments in years one, two and three only, what will be the amount of each payment? d. What will be the equivalent uniform annual amount of the contract in years one through ten?
A savvy investor paid $5,500 for a 20-year $10,000 mortgage bond that had a bond interest rate of 8% per year, payable quarterly. Three years after he purchased the bond, market interest rates went down, so the bond increased in value. If the investor sold the bond for $11,500 three years after he bought it, what rate of return did the investor make per quarter and per year (nominal)? The rate of return per quarter is%. The rate of return per year is%.
Q.4. Subject  :- Economic

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Basics Of Engineering Economy

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