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 7P
To determine
Calculate the annual cost.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Bull Built, a design/build engineering company that has always given year-end bonuses in the amount of $4,000 to each of its engineers, is having cash flow problems. The president said that although Bull Built couldn’t give bonuses this year, next year’s bonus would be large enough to make up for this year’s omission. If the interest rate is 10% per year, what is the equivalent bonus that engineers should receive next year?
Mario borrowed $2 million to sustain his educational needs. In an effort to pay off the loan quickly, the he made four payments in years 1 through 4, with each payment being twice as large as the preceding one. At an interest rate of 10% per year, what was the size of the first payment?
How much would your parents have to deposit each month into an account that grows at a rate of 12% per year, compounded semiannually, if they want to have $80,000 at the end of year 3 to cover part of your college expenses? Assume no interperiod compounding. Also, write the spreadsheet function to display the monthly amount.
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
- SMS Inc. wants to have enough money to purchase a new tractor-trailer in 5 years. If the unit will cost $500,000, how much should the company set aside each year (starting at the end of year 1 and each year until year 5) if the account earns a compound interest of 12% per year? (All the alternatives presented below were calculated using compound interest factor tables including all decimal places) $283,700 $138,705 $78,705 $61,615arrow_forwardProfits from recycling paper, cardboard, aluminum, and glass at a liberal arts college have increased at a constant rate of $1100 in each of the last 4 years. If this year's profit (end of year 1) is expected to be $6000 and the profit trend continues through year 5, (a) what will the profit be at the end of year 5 and (b) what is the present worth of the profit at an interest rate of 8% per year?arrow_forwardPollution control equipment for a pulverized coal cyclone furnace is expected to cost $190,000 two years from now and another $120,000 four years from now. If Monongahela Power wants to set aside enough money now to cover these costs, how much must be invested at an interest rate of 8% per year compounded quarterly?arrow_forward
- Improvised explosive devices (IEDs) are responsible for many deaths in times of strife and war. Unmanned ground vehicles (robots) can be used to disarm the IEDs and perform other tasks as well. If the robots cost $165,000 each and the military arms unit signs a contract to purchase 3,500 of them now and another 9,000 one year from now, what is the equivalent annual cost of the contract over a 10- year period at 9% per year interest? The equivalent cost of the contract is determined to be $2254312500arrow_forwardErbitux is a colorectal cancer treatment drug that is manufactured by ImClone Systems, Inc. If the treatment takes place over a 1 year period at a cost of $10,000 per month and the patient lives 5 years longer than he/she would have lived without the treatment, how much would that person have to earn each month beginning 1 month after treatment ends in order to earn an amount equivalent to the total treatment cost at an interest rate of 12% per year compounded monthly?arrow_forwardImprovised explosive devices (IEDs) are responsible for many deaths in times of strife and war. Unmanned ground vehicles (robots) can be used to disarm the IEDs and perform other tasks as well. If the robots cost $120,000 each and the military arms unit signs a contract to purchase 3,000 of them now and another 7,500 one year from now, what is the equivalent annual cost of the contract over a 9-year period at 12% per year interest? The equivalent cost of the contract is determined to be $arrow_forward
- A semiconductor company that usually gives year-end bonuses in the amount of 7,000 pesos to each of its operators is having budget problems. The company decided not to give bonuses this year, it would give each operator two bonuses next year, the regular one 7,000 pesos plus an amount equivalent to 7,000 pesos that each operator should have gotten this year. If the interest rate is 7% per year, what will be the total amount of bonus money the operators should get next year?arrow_forwardCisco’s gross revenue (the percentage of total revenue left after subtracting the cost of goods sold) was 70.1% of total revenue over a 4-year period. If the total revenue per year was $5.8 billion for the first two years and $6.2 billion for the last 2, find the future worth of the gross revenue series in year 4 at an interest rate of 14% per year.arrow_forwardNippon Steel’s expenses for heating and cooling one of its large manufacturing facilities are expected to increase according to an arithmetic gradient beginning in year 2. The costs are expected to be $550,000 now (year 0), $550,000 in year 1, and increases by $40,000 each year through year 12. What is the equivalent annual worth in years 1–12 of the costs at an interest rate of 10% per year?arrow_forward
- The cash flow associated with a strip mining operation is expected to be $200,000 in year 1, $180,000 in year 2, and amounts decreasing by $20,000 per year through 8. At an interest rate of 12% per year, what is the equivalent annual cash flow.arrow_forwardThe future worth 5 years from now of a present cost of $105,000 to Hydron, Inc., at an interest rate of 12% per year, compounded monthly is correctly calculated with the following equation: F= 105,000(P/F, 12%, 60) F= 105,000(F/P, 1%, 5) F= 105,000(P/F, 12%, 5) F= 105,000(F/P, 1%, 60)arrow_forwardImprovised explosive devices are responsible for many deaths in times of strife and war. Unmanned ground vehicles can be used to disarm the IEDs and perform other tasks as well. If the robots cost $125,000 each and the military arms unit signs a contract to purchase 3,500 of them now and another 6,500 one year from now, what is the equivalent annual cost of the contract over a 6-year period at 8% per year interest? The equivalent cost of the contract is determined to be whatarrow_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