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 5P
To determine
Calculate the required revenue.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A wind turbine engineering firm has both the experience and an undeveloped plan for a new and more efficient design. A manufacturer
has offered to pay the firm $2,000,000 for a working prototype, with complete documentation, 3 years from today. The turbine design
firm wants to earn 22% per year on its money. How much can the turbine design firm afford to invest, expressed as if its entire
investment were to take place today?
A new roof will cost
$15,000.
It will be installed in
10
years. If the interest rate is
9%
per year, how much must be saved each year to accumulate
$15,000
after
10
years?
If the interest rate is 9% per year, the amount to be saved annually is $ ?
If money is worth 5% per year, would it be a good investment to spend $100,000 for a new food processing unit (with zero salvage value) which would save spending $12,000 per year for the next 7 years?
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 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 $96,000 now and $64,000 in each of the next 4 years to improve productivity. By how much must annual costs decrease in years 5 through 13 to recover the investment plus a return of 10% per year? The annual cost decreases by $ 1256676arrow_forwardCTX 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_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
- Q) The maintenance costs associated with a machine are $2000 per year for the first ten years and $1000 per year thereafter. The machine has an infinite life. If interest is 10% per year, what is the present worth of the annual disbursements? Explain it early but not solve in excel. Typed or handwriting only use.arrow_forwardQuestion 3 You spend $2,000 in years 0 thru 5, $2,200 in year 6, $2,400 in year 7 and the amounts are increasing by $200 per year until year 12. The interest rate is 12% per year. (a) What is the total present worth in year 0? (b) What is the equivalent annual worth (years 1-12)?arrow_forwardRevenue from gas wells that have been in production for at least 5 years tends to follow adecreasing geometric gradient. One particular rights holder received royalties of $4000per year for years 1 through 6, but beginning in year 7, income decreased by 15% peryear through year 14. What was the future value (year 14) of the income from the well, ifall of the income was invested at 10% 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_forwardChoose 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_forwardHi, what is the answer and how you got it? A 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 $82,000 now and $52,000 in each of the next 4 years to improve productivity. By how much must annual costs decrease in years 5 through 15 to recover the investment plus a return of 12% per year? The annual cost decreases by $?arrow_forward
- A rural utility company provides standby power to pumping stations using diesel-powered generators. An alternative has arisen whereby the utility could use a combination of wind and solar power to run its generators, but it will be a few years before the alternative energy systems are available. The utility estimates that the new systems will result in savings of $15,000 per year for 3 years, starting 2 years from now and $25,000 per year for 4 more years after that, i.e., through year 8. At an interest rate of 8% per year, determine the equivalent annual worth for years 1 through 8 of the projected savings.arrow_forwardYour company has a $300,000 loan for a new security system it just bought. The annual payment is $ 28,500 and the interest rate is 7% per year for 20 years. Your company decides that it can afford to pay $40,000,000 per year. After how many payments (years) will the loan be paid off? Answer is Blank 1 years Note: do not use comma, no need to put the unit of measure and final answer must be in 2 decimal placesarrow_forwardThe amount of P20,000.00 was borrowed from a lending investor at an interest rate of 5% per month. How the interest is he going to pay at the end of 10months? Solve manuallyarrow_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:PEARSON
Engineering 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 Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial 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