Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 6, Problem 43P

(a):

To determine

Selection of independent alternative on the basis of overall rate of return.

(b):

To determine

Selection of mutually exclusive alternative on the basis of incremental rate of return.

(c):

To determine

Selection of mutually exclusive alternative on the basis of incremental rate of return with new MARR.

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9) Shin Satellite Corp. issues 10,000 debenture bonds with a face value of $26,000 each and a bond interest rate of 18% per year payable semiannually. The bonds have a maturity date of 10 years. If the market interest rate is 14% per year, compounded semiannually, what is the present worth of one bond to a person who wants to purchase it and earn the market rate? 9)
ABC Corporation was able to issue 20-year P10,000,000-face value bonds with interest of 8% per annum, due every quarter. It incurred issuance cost of P350,000 but it got net proceeds of P10,200,000 from the issuance. The annual effective cost of these bonds is closest to *a. 7.8017%b. 8.1545%c. 8.1527%d. 7.7993%
The four alternatives described below are being evaluated.a. If the proposals are independent, which one(s) should be selected at a MARR of 17% per year?b. If the proposals are mutually exclusive, which one should be selected at a MARR of 14.5% per year?c. If the proposals are mutually exclusive, which one should be selected at a MARR of 10.0% per year? i need solution in equation form

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Basics Of Engineering Economy

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