Engineering Economy, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134838137
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 63P
To determine
Calculate the present worth.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Required information
Assume that 25 years ago your dad invested $320,000, plus $32,000 in years 2 through 5, and $49,000 per year from
year 6 on.
Determine the annual retirement amount that he can withdraw forever starting next year (year 26), if the $49,000 annuity stopped at
year 25. The interest rate being 14% per year.
The annual retirement amount is determined to be $
You are 20 years old. In five years, you will have access to a trust fund that will be worth $20,000 (at
the time of access). If you leave that money in an investment account earning 8% per year until you
are 60, how much will be in the account?
A $10,000 bond has an interest rate of 6% per year payable quarterly. The bond matures 15 years from now. At a nominal interest rate of 8% per year, compounded quarterly, the present worth of the bond is represented by which of the equations below:
PW = 150(P/A, 2%, 60) + 10,000(P/F, 2%, 60)
PW = 600(P/A, 2%, 60) + 10,000(P/F, 2%, 60)
PW = 600(P/A, 8%, 15) + 10,000(P/F, 8%, 15)
PW = 150(P/A, 1.5%, 60) + 10,000(P/F, 1.5%, 60)
Chapter 6 Solutions
Engineering Economy, Student Value Edition (17th Edition)
Ch. 6 - An oil refinery finds that it is necessary to...Ch. 6 - The Consolidated Oil Company must install...Ch. 6 - One of the mutually exclusive alternatives below...Ch. 6 - Three mutually exclusive design alternatives are...Ch. 6 - Prob. 5PCh. 6 - Prob. 6PCh. 6 - Fiesta Foundry is considering a new furnace that...Ch. 6 - Prob. 8PCh. 6 - DuPont claims that its synthetic composites will...Ch. 6 - Prob. 10P
Ch. 6 - Which alternative in the table below should be...Ch. 6 - Prob. 12PCh. 6 - The alternatives for an engineering project to...Ch. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Refer to the situation in Problem 6-16. Most...Ch. 6 - An old, heavily used warehouse currently has an...Ch. 6 - Prob. 19PCh. 6 - Two electric motors (A and B) are being considered...Ch. 6 - Two mutually exclusive design alternatives are...Ch. 6 - Pamela recently moved to Celebration, Florida, an...Ch. 6 - Environmentally conscious companies are looking...Ch. 6 - Prob. 24PCh. 6 - Two 100 horsepower motors are being considered for...Ch. 6 - In the Rawhide Company (a leather products...Ch. 6 - Refer to Problem 6-2. Solve this problem using the...Ch. 6 - Prob. 28PCh. 6 - Prob. 29PCh. 6 - Two electric motors are being considered to drive...Ch. 6 - Prob. 31PCh. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Potable water is in short supply in many...Ch. 6 - Three mutually exclusive investment alternatives...Ch. 6 - Prob. 36PCh. 6 - A companys MARR is 10% per year. Two mutually...Ch. 6 - Prob. 38PCh. 6 - a. Compare the probable part cost from Machine A...Ch. 6 - A one-mile section of a roadway in Florida has...Ch. 6 - Two mutually exclusive alternatives are being...Ch. 6 - Prob. 42PCh. 6 - IBM is considering an environmentally conscious...Ch. 6 - Three mutually exclusive earth-moving pieces of...Ch. 6 - A piece of production equipment is to be replaced...Ch. 6 - Prob. 46PCh. 6 - Prob. 47PCh. 6 - Prob. 48PCh. 6 - Prob. 49PCh. 6 - Prob. 50PCh. 6 - Prob. 51PCh. 6 - Prob. 52PCh. 6 - Prob. 53PCh. 6 - Use the imputed market value technique to...Ch. 6 - Prob. 55PCh. 6 - Prob. 56PCh. 6 - Prob. 57PCh. 6 - Prob. 58PCh. 6 - Prob. 59PCh. 6 - Prob. 60PCh. 6 - Prob. 61PCh. 6 - Prob. 62PCh. 6 - Prob. 63PCh. 6 - Prob. 64PCh. 6 - Prob. 65PCh. 6 - Prob. 66PCh. 6 - Three models of baseball bats will be manufactured...Ch. 6 - Refer to Example 6-3. Re-evaluate the recommended...Ch. 6 - Prob. 69SECh. 6 - Prob. 70SECh. 6 - Prob. 71SECh. 6 - Prob. 72CSCh. 6 - Prob. 73CSCh. 6 - Prob. 74CSCh. 6 - Prob. 75FECh. 6 - Prob. 76FECh. 6 - Prob. 77FECh. 6 - Complete the following analysis of cost...Ch. 6 - Prob. 79FECh. 6 - For the following table, assume a MARR of 10% per...Ch. 6 - Prob. 81FECh. 6 - Problems 6-82 through 6-85. (6.4) Table P6-82 Data...Ch. 6 - Prob. 83FECh. 6 - Problems 6-82 through 6-85. (6.4) Table P6-82 Data...Ch. 6 - Problems 6-82 through 6-85. (6.4) Table P6-82 Data...Ch. 6 - Consider the mutually exclusive alternatives given...Ch. 6 - Prob. 87FE
Knowledge Booster
Similar questions
- For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. Company C wants to start saving money for replacement of network servers. If the company invests $100,000 at the end of year 1 but decreases the amount invested by 5% each year, how much will be available 5 years from now at an earning rate of 10% per year?arrow_forwardSpivey just won the Powerball lottery! The $20,000,000 jackpot will be paid in 20 annual installments of $1,000,000 each, with the first payment to be paid immediately. Spivey’s opportunity cost of capital (interest rate) is 6% per year. What is the present equivalent of Spivey’s lottery winnings at the time of the first payment?arrow_forwardHow much interest (to the nearest dollar) would be saved on the following loan if the condominium were financed for 15 rather than 30 years? A $261,000 condominium bought with a 30% down payment and the balance financed for 30 years at 3.05%arrow_forward
- Construct the cash flow diagram to find the present worth in year 0 at an interest rate of 15% per year for the following project: Year 0 Cash Flow ($) 19,000 1 +8,100 2 +8,100 Answer 3 +8,100 4 +8,100arrow_forwardA small company wishes to set up a fund that can be used for technology purchases over the next 6 years. Their forecast is for $16,000 to be needed at the end of year 1, decreasing by $2,000 each year thereafter. The fund earns 9% per year. How much money must be deposited to the fund at the end of year 0 to just deplete the fund after the last withdrawal?arrow_forwardWhat lump-sum amount of interest will be paid on a $20,000 loan that was made on May 1, 2020, and repaid on August 1, 2020, with ordinary simple interest at 10% per year?arrow_forward
- Please provide a clear and complete solution. Answer fast for I have 30 minutes left. Thank you very much.arrow_forwardXYZ rapid prototyping (RP) software costs $29,000 and lasts one year, and will be expensed (i.e., written off in one year, and treated as an end- of-year cash flow). The cost of the upgrades will increase 11% per year beginning in the second year (again, using end-of-year cash flows). How much can be spent now for an RP software upgrade agreement that lasts three years and must be depreciated with the SL method to zero over three years? MARR is 20% per year (im), and the effective income tax rate (t) is 22%.arrow_forwardA recently-installed machine earns the company revenue at a continuous rate of 51000t + 11000 dollars per year during the first six months of operation and at the continuous rate of $73000 per year after the first six months. The cost of the machine is $150000, the interest rate is 9% per year, compounded continuously, and t is time in years since the machine was installed. (a) Find the present value of the the revenue earned by the machine during the first year of operation. (Specify your answer to the nearest cent (i.e., 0.01 dollar).) present value = $ (b) Find how many 6-month time intervals it will take for the machine to pay for itself; that is, how many 6-month time intervals will it take for the present value of the revenue to just exceed the cost of the machine? number of 6-month time intervals =arrow_forward
- Can some one please help me to solve this question? Please and thank you!!arrow_forwardGive typing answer with explanation and conclusionarrow_forwardAn environmentally friendly green home (99% air tight) costs about 8% more to construct than a conventional home. Most green homes can save 15% per year on energy expenses to heat and cool the dwelling. For a $250,000 conventional home, how much would have to be saved in energy expenses per year when the life of the home is 30 years and the interest rate is 10% per year? Assume the additional cost of a green home has no value at the end of 30 years.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