Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 5, Problem 33APQ
To determine
Converting the present worth to annual worth.
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The future worth of a project with initial cost P, positive annual cash flows of A, salvage value S, and interest rate of i over a life of n years can be calculated using which statement?
(a) FW = −P(F/P, i%, n) + A(F/A, i%, n) + S(F/P, i%, n)
(b) FW = P(F/P, i%, n) + A(F/A, i%, n) + S
(c) FW = −P(P/F, i%, n) + A(F/A, i%, n) − A[(P/A, i%, n) + S
(d) FW = −P(F/P, i%, n) + A(F/A, i%, n) + S?
TRUE OR FALSE
The future worth of a perpetuity from one (1) to ? years is undefined because as ? approaches infinity, the valuebecomes 0.
The breakeven point always maximizes the profit.
Simplifying [(n+1)! / n!] gives what?
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
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- Problem 2: Select one of the following two plans using the present worth method. Given i= 20% per year. 1st Cost ($) Life (years) Salvage value ($) Annual Cost ($) Plan 1 25,000 10 5,000 6,000 Plan 2 50,000 20 0 2,500arrow_forwardA new Wave soldering machine is expected to save Fast Circuit Boards 11,500 per year through a reduction of labour costs and increased quality. The machine has an expected life of 8 years, with zero salvage value after that time. The company can expect to get a 10 percent return on any investment. Determine the maximum price that they can afford to pay for the machine up front? Machine Costarrow_forwardNeed help tyarrow_forward
- Why the annual worth value give you the same exact value for the repeated period? (Why only the annual worth method will give you a value for one period and it will equal the same exact value for the repeated periods?)arrow_forwardA continuous improvement team has helped to save $20,000 for the company on a process that will not be changed for the next 10 years. If the team has spent $50,000 on the improvement project, the net present worth (NPW) of savings on this improvement project is $150,000 at a MARR of 5%. O True O Falsearrow_forwardA diesel engine uses a Type A filter and high-grade lubricating oil costing $5.50 per liter. With this filter, the oil and filter have to be changed every 500 hours of operation, and 5 liters of oil have to be added every 100 hours. This filter cost $148 a piece.Eighty liters of oil fill the engine. Another type, filter B, costing $120 may be used with a lower grade oil costing $4.80 per liter. However, if this filter is used, the oil andfilter have to be changed every 300 hours, and 10 liters are added after every 150 hours the engine is used. Which type of filter and oil would you recommend? Kindly show your complete solutions. Thank youarrow_forward
- Wall’s Pharmacy will have to sell a new product that has an estimated revenue of $5,100 per month and costs of $1,000 per month with an initial purchase of $28,000. How long will Wall's Pharmacy have to sell a new product if the MARR is 3% per month? Wall's Pharmacy will have to sell a new product for __ months.arrow_forward10 4 points In which of the expressions below does q represent a breakeven point? O q(p - AVC) = TVC O a(p- AVC) = TFC a (p - AVC) = AFC %3D %3D a (p – AFC) =TC Previousarrow_forwardM4arrow_forward
- Chambers Company has just gathered estimates forconducting a break-even analysis for a new product.Variable costs are $7 a unit. The additional plant willcost $48,000. The new product will be charged $18,000a year for its share of general overhead. Advertisingexpenditures will be $80,000, and $55,000 will be spenton distribution. If the product sells for $12, what is thebreak even point in units? What is the break even pointin dollar sales volume?arrow_forwardQ 7arrow_forwardA finance company advertises two investment plans. In Plan A, the company pays P10,500 after 12 years for every P10,000 now. In Plan B, for every P10,000, the company pays P60,000 at the end of the 10th year and P40,000 at the end of the 15th year. Choose the best plan if interest is 10% annually using Present Worth Analysis Methodarrow_forward
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