Engineering Economy
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 8, Problem 59FE
To determine

Calculate the present worth.

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Tuition at xyz this year cost $61,170. If the inflation rate is 2% for the foreseeable future anfd if the cost of attending XYZ rises at the rate of inflation, what will it cost in 20 years to attend XYZ for 1 year? For 4 years (2038-2042)?
You and your spouse just adopted twin girls, little Heather and Beth. You want to make sure they are taken care of for the next 22 years.  (A)Based on the following information, how much life insurance needs to be purchased for the husband using the income approach, if any?  (B) How much, if any, needs to be purchased for the wife using the income approach?   Assume 3% inflation rate.                Market Labor Value Household Production Value Husband $72,000 $15,000 Wife $15,000 $40,000
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