EBK ENGINEERING ECONOMY
16th Edition
ISBN: 9780133819014
Author: Koelling
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 84P
To determine
Calculate the present value.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A retail outlet is being designed in a strip mall in Nebraska. For this outlet, the installed fiberglass insulation to protect against heat loss in the winter and heat gain in
the summer will cost an estimated $90,000. The annual savings in energy due to the insulation will be $20,000 at EOY one in the 9-year life of the outlet, and these
savings will increase by 12% each year thereafter. If the annual interest rate is 15%, is the cost of the proposed amount of insulation justified?
A retail outlet is being designed in a strip mall in Nebraska. For this outlet, the installed fiberglass insulation to protect
against heat loss in the winter and heat gain in the summer will cost an estimated $110,000. The annual savings in
energy due to the insulation will be $19,000 at EOY one in the 8-year life of the outlet, and these savings will increase by
15% each year thereafter. If the annual interest rate is 20%, is the cost of the proposed amount of insulation justified?
Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year.
Click the icon to view the interest and annuity table for discrete compounding when ;=20% per year.
The present equivalent of energy savings is $
Is the cost of the proposed amount of insulation justified?
No
O Yes
(Round to the nearest dollar.)
Suppose that the parents of a young child decide to make annual deposits into a saving account, with the first deposit being made on the child's fifth birthday and the last deposit being made on the 15th birthday. Then, starting on the child's 18th birthday (EOY), four withdrawals will be made. The sequence of the amounts of withdrawals is $2000, $2400, $2800 and $3200. If the effective annual interest rate is 8% during this period, what are the annual deposits in years 5 through 15? Use a uniform gradient amount in your solution and support your work by drawing the cash flow diagram .Draw the cash flow diagram and solve the problem.
Chapter 4 Solutions
EBK ENGINEERING ECONOMY
Ch. 4 - Prob. 1PCh. 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 - Prob. 10P
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 - Twelve payments of 10,000 each are to be repaid...Ch. 4 - Prob. 32PCh. 4 - Automobiles of the future will most likely be...Ch. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - A geothermal heat pump can save up to 80% of the...Ch. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 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 - Maintenance expenses for a bridge on the Ohio...Ch. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63PCh. 4 - Prob. 64PCh. 4 - Prob. 65PCh. 4 - Prob. 66PCh. 4 - Prob. 67PCh. 4 - Prob. 68PCh. 4 - Prob. 69PCh. 4 - Prob. 70PCh. 4 - Prob. 71PCh. 4 - Prob. 72PCh. 4 - Prob. 73PCh. 4 - Prob. 74PCh. 4 - Prob. 75PCh. 4 - Prob. 76PCh. 4 - Prob. 77PCh. 4 - Prob. 78PCh. 4 - Prob. 79PCh. 4 - Prob. 80PCh. 4 - Prob. 81PCh. 4 - Prob. 82PCh. 4 - Prob. 83PCh. 4 - Prob. 84PCh. 4 - Prob. 85PCh. 4 - Prob. 86PCh. 4 - Prob. 87PCh. 4 - Prob. 88PCh. 4 - Prob. 89PCh. 4 - Prob. 90PCh. 4 - Prob. 91PCh. 4 - Prob. 92PCh. 4 - Prob. 93PCh. 4 - Prob. 94PCh. 4 - Prob. 95PCh. 4 - Prob. 96PCh. 4 - Prob. 97PCh. 4 - Prob. 98PCh. 4 - Prob. 99PCh. 4 - Prob. 100PCh. 4 - A large bank has increased its annual percentage...Ch. 4 - Prob. 102PCh. 4 - Prob. 103PCh. 4 - Prob. 104PCh. 4 - Prob. 105PCh. 4 - Prob. 106PCh. 4 - Prob. 107PCh. 4 - Prob. 108PCh. 4 - Prob. 109PCh. 4 - Prob. 110PCh. 4 - Prob. 111PCh. 4 - Prob. 112PCh. 4 - Prob. 113PCh. 4 - Prob. 114PCh. 4 - Prob. 115PCh. 4 - Prob. 116PCh. 4 - Prob. 117PCh. 4 - Prob. 118PCh. 4 - Prob. 119PCh. 4 - Prob. 120PCh. 4 - Prob. 121PCh. 4 - Prob. 122PCh. 4 - Prob. 123PCh. 4 - Prob. 124PCh. 4 - Prob. 125PCh. 4 - Prob. 126PCh. 4 - Analyze the truth of this statement, assuming you...Ch. 4 - Prob. 128PCh. 4 - Prob. 129SECh. 4 - Prob. 130SECh. 4 - Prob. 131SECh. 4 - Prob. 132SECh. 4 - Prob. 133CSCh. 4 - Prob. 134CSCh. 4 - Prob. 135CSCh. 4 - Prob. 136FECh. 4 - Prob. 137FECh. 4 - Prob. 138FECh. 4 - Prob. 139FECh. 4 - Prob. 140FECh. 4 - Prob. 141FECh. 4 - Prob. 142FECh. 4 - Prob. 143FECh. 4 - Prob. 144FECh. 4 - Prob. 145FECh. 4 - Prob. 146FECh. 4 - Prob. 147FECh. 4 - Prob. 148FECh. 4 - Prob. 149FECh. 4 - Prob. 150FECh. 4 - Prob. 151FE
Knowledge Booster
Similar questions
- If an applicable interest rate is 7.3% per year, compounded monthly, what is its effective annual rate? Calculate to at least 4 significant figures and omit the percentage sign. For example, if your answer is 10.333333% you should then enter 10.33. If your answer is 3.777777% you should then enter 3.777.arrow_forwardWhen you take your first job, you decide to start saving right away for yourretirement. You put $ 5,000 per year into the company’s 401(k) plan, whichaverages 8% interest per year. Five years later, you move to another job andstart a new 401(k) plan. You never get around to merging the funds in the twoplans. If the first plan continued to earn interest at the rate of 8% per year for 35 years after you stopped making contributions, how much is the account worth?arrow_forwardA small company heats its building and will spend $9,900 in year 1 on natural gas for this purpose. Cost increases of natural gas are expected to be 10% per year starting year 2. Their maintenance on the gas furnace is going to be $385.25 in the first year and this expense is expected to increase by 15% per year starting year 2. If the planning horizon is 13 years, what is the total annual equivalent expense for operating and maintaining the furnace? The interest rate is 20% per year. (a) The total present worth of operating and maintaining the furnace is $ (Round to nearest dollar) (b) The total annual equivalent expense for operating and maintaining the furnace is $ (Round to nearest dollar)arrow_forward
- What is the annual interest rate if a $15,000 investment receives $365 in 4 months?arrow_forwardSuppose that the installation of Low-Loss thermal windows is expected to save $450 per year on your home heating bill. If you expect to occupy your home for 40 years and could earn 6% per year on other investments, how much can you for the pay now to have the new windows installed?arrow_forwardPâmela is interested in buying a motorcycle, whose cash price is R$4,500. Pâmela intends to pay a down payment of R$600 and the remainder in 12 monthly installments. Calculate what will be the value of the installments if the rate is 4% per month.arrow_forward
- What is the present value of a $750 payment when interest is 6.75% in 2 years? $657.90 $702.58 $447.76 $800.63arrow_forwardIt is estimated that a copper mine will produce 10,000 tons of ore during the coming year. Production is expected to increase by 5% per year thereafter in each of the following six years. Profit per ton will be $14 for years one to seven. a. Draw a cash flow diagram for this copper mine operation from the company's viewpoint. b. If the company can earn 10% per year on its capital, what is the equivalent of the coppermines cashflow in year seven?arrow_forwardAn engineer contributes $5,000 per year to her retirement account out of her year-end bonus. The interest rate is 8%, compounded annually. How much money will she have in the account after 35 years?arrow_forward
- 8. Consider a series of cash flows that begins with $1000 received at the end of year 7. At the end of year 8, you receive $1100, and $1200 at the end of year 9. This pattern of increasing cash flow receipts occurs through the end of year 20. What is the present equivalent value (time 0) of this cash flow series when the interest rate is 8% per year?arrow_forwardIf an electric appliance present worth is P120,000.00 and is being paid P5000.00 indefinitely, calculate the interest rate.arrow_forwardFor the cash flow revenues shown below, find the value of G that makes the equivalent annual worth in years 1 through 7 equal to $500. The interest rate is 5.00% per year. (Round the final answer to three decimal places.) Cash flow, $ Year 0 1 2 3 125.0 125.0+ G 125.0+ 2G The value of G is $ Year 4 5 6 7 Cash flow, $ 125.0+ 3G 125.0+4G 125.0+ 5G 125.0+ 6Garrow_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:PEARSONEngineering 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 LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial 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