Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 24P
To determine
Calculate the Monthly worth.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The State of Chiapas, Mexico, decided to fund a program for literacy. The first cost of $220,000 now and an updated budget of
$65,000 every 7 years forever is requested. Determine the perpetual equivalent annual cost at an interest rate of 10% per year.
The perpetual equivalent annual cost is $-
Las Cruces' Virgin Galactic is considering two materials
for certain parts in a reusable space vehicle: carbon fiber
reinforced plastic (CFRP) and fiber reinforced ceramic
(FRC). The costs are shown below. Which should be
selected on the basis of a present worth comparison if
MARR = 10% per year? (a) Solve using tabulated factors.
(b) (Spreadsheet exercises) Solve using single-cell
functions. (c) Using your spreadsheet functions, will the
selection change if the estimated life of the CFRP
material is 4, rather than 2, years?
Material
CFRP
First cost, $
Maintenance cost, $/year -29,000
Salvage value, $
2,000
Life, years
FRC
-205,000 -235,000
-27,000
20,000
2
4
A $10,000 loan amortized over 5 years at an interest rate of 10% per year requires payments of $2638 to completely remove the loan when interest is charged on the unrecovered balance of the principal. If interest is charged on the original principal instead of the unrecovered balance, what is the loan balance after 5 years, provided the same $2638 payments are made each year?
Chapter 5 Solutions
Basics Of Engineering Economy
Ch. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - Prob. 10P
Ch. 5 - Two machines with the following cost estimates are...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Estimates have been presented to Holly Farms,...Ch. 5 - Prob. 20PCh. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - A major repair on the suspension system of Janes...Ch. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - Prob. 31PCh. 5 - Prob. 32APQCh. 5 - Prob. 33APQCh. 5 - Prob. 34APQCh. 5 - Prob. 35APQCh. 5 - Prob. 36APQCh. 5 - The AW values of three revenue alternatives are ...Ch. 5 - Prob. 38APQCh. 5 - Prob. 39APQCh. 5 - Use an interest rate of 10% per year. The...Ch. 5 - Prob. 41APQCh. 5 - Prob. 42APQ
Knowledge Booster
Similar questions
- A company that manufactures brushes blowers invested $650,000 in an automated quality controlsystem for blower housings. The resultant savings was $160,000 per year for 5 years. If the equipmenthad a salvage value of $50,000, what rate of return per year did the company make? (Initial guess i = 5%)arrow_forwardDuring recessionary periods, bonds that were issued many years ago have a higher coupon rate than currently issued bonds. Therefore, they may sell at a premium, a price higher than their face value, because of currently low coupon rates. A $50,000 bond that was issued 15 years ago is for sale for $60,000. What rate of return per year will a purchaser make if the bond coupon rate is 14% per year, payable annually, and the bond is due 5 years from now? Write the ROR equation and use a single-cell spreadsheet function to display the correct answer directly.arrow_forwardThe cost of a fence that can detect poacher intrusion into a National Wildlife Preserve is $2.9 million per mile. If the effective life of the fence is 15 years, determine the equivalent annual cost of a/an 6-mile long fence at an interest rate of 8% per year. The equivalent annual cost is $arrow_forward
- Faro laser trackers are portable contact measurement systems that use laser technology to measure large parts and machinery to accuracies of 0.0002inches across a wide range of industrial applications. A customer that manufactures and installs cell phone relay dishes and satellite receiving stations reported the cash flows (in $1000 units) for one of its product lines. (a) Determine the number of possible rate of return values. (b) Find all rate ofreturn values between 0 and 150%.arrow_forwardThe alternatives shown are to be compared on the basis of their present worth values. At an interest rate of 10% per year, the values of n that you should use in the uniform series factors to make a correct comparison by the present worth method are: (a) n = 3 years for A andn = 3 years for B (b) n = 3 years for A andn = 6 years for B (c) n = 6 years for A andn = 6 years for B (d) None of the above Alternative A Alternative B First cost, $ -50,000 -90,000 - 10,000 Annual operating cost, $ per year Salvage value, $ Life, years -4000 13,000 15,000 3 a b C d.arrow_forwardDemco Products, a company that manufactures stainless steel control valves, has a fund for equipment replacement that contains $500,000. The company plans to spend $85,000 each year on new equipment. Estimate the number of years it will take to reduce the fund to zero at an interest rate of 11.00% per year. The number of years is estimated to be between andarrow_forward
- An engineer received a bonus of $12,000 that he will invest now. He wants to calculate the equivalent value after 24 years, when he plans to use all the resulting money as the down payment on an island vacation home. Assume a rate of return of 8% per year for each of the 24 years. Find the amount he can pay down, using the tabulated factor, the factor formula, a spreadsheet function, and a calculator function.arrow_forwardNorthwest Iron and Steel is considering getting involved in electronic commerce. A modest e-commerce package is available for $30,000. The company wants to recover the cost in 2 years. Find the equivalent amount of new revenue that must be realized every 6 months at an interest rate of 3% per quarter using (a) factor formula, and (b) a single-cell spreadsheet function that includes an EFFECT function.arrow_forwardThe annual worth for years 1 through infinity of $50,000 now, $10,000 per year in years 1 through 15, and $20,000 per year in years 21 through infinity at 10%/year is closest to Between $15,400-$15,800 Between $15,800-$16,200 Between $16,200-$16,600 Higher than $16,600arrow_forward
- Neighboring parishes in Louisiana have agreed to pool road tax resources already designated for bridge refurbishment. At a recent meeting, the engineers estimated that a total of $500,000 will be deposited at the end of next year into an account for the repair of old and safety-questionable bridges throughout the area. Further, they estimate that the deposits will increase by $100,000 per year for only 9 years thereafter, then cease. Determine the equivalent (a) present worth and (b) annual series amounts, if public funds earn at a rate of 5% per year. Draw the cash flow diagram and show complete solution. Make it clear tyarrow_forwardWhat is the equivalent annual cost in years 1 through 7 of a contract that has a first cost of $65,000 in year 0 and annual costs of $18,000 in years 3 through 7? Use an interest rate of 14% per year. The equivalent annual cost is determined to be $|arrow_forwardA mechanical consulting company is examining its cash flow requirements for the next 10 years. The company expects to replace office machines and computer equipment at various times over the 10-year planning period. Specifically, the company expects to spend $5000 2 years from now, $5000 6 years from now, and $7000 8 years from now. At an interest rate of 13% per year, determine: a) The present worth of the planned expenditure for only the $5000 in year 2 is $ Leave your answer as a positive value and to the nearest $100 dollar. b) The net present worth of all planned expenditures is $ Leave your answer as a positive value and to the nearest $100 dollar.arrow_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