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- The annual cash flows (in $1000 units) for Browning Brothers Glass Works are summarized. (a) Determine the total net cash flow over the 5 years. (b) Calculate the percentage of revenues represented by expenses for each year. Year 1 2 3 4 5 Revenue, $ 521 685 650 804 929 Expenses, $ 610 623 599 815 789ENGINEERING ECONOMICSIt costs P500,000 at the end of each year to maintain a section of Kennon Road in Baguio City. If money is worth10%, how much would it pay to spend immediately to reduce the annual cost to P100,000?a. List the given variablesb. Formula & Complete solutionengineering economy 1.) Accumulate P 5,000.00 for 10 years at 8% compounded monthly. 2.) What is the accumulated value of a payment of P12,500.00 at the end of each year for 9 years with interest at 5% compounded annually? 3.) Consider a project which involves the investment of P100,000.00 now and P100,000 at the end of one year. Revenues of P150,000 will be generated at the end of years 1 and 2. What is the net present value of this project if the annual interest rate is 10%?
- One Time Costs Land-$10 million (Year 0) Construction- $100 million ($50 M in Year 0 and $50M in Year 1 Medical equipment- $25million (Year 0) Licensing & Consulting- $15M (spread across year 0and 1) Initial Marketing Campaign- $5 million (Year 2) Annual Values Operations & Staff- $11M / year (Year 2+) Maintenance- $2.5M / year (Year 2+) Tech Updates-$1.5M / year (Year 4+) Overhauls Equipment Repairs- $18M (Year 10) Facilities Upgrades- $25M (Year 15) Revenue From Year 3-10: starts at $60 M, increases by $5 M annually Year 11+: 100M annually Salvage value- $25M (Year 20) Assuming an interest rate of 3% per year (effective), calculate the feasibility. You can use either Present Worth Analysis or Equivalent Uniform Worth Analysis. In this part, your calculation should be done without the use of Excel. Show your equations and the results.20 years later, Alex is has $1,000,000 in his investment account. He plans to spend $200,000 each year from his account. How many years would it take before his account is depleted? Use i = 8% per year.Assume monthly car payments of $500 per month for 4 years and an interest rate of 0.75% per month. What initial principal or PW will this repay?
- ENGINEERING ECONOMICSKyle is a grade 5 student currently taking his modular class at home since the pandemic happened in the lastmonth of the first quarter of that year 2020 here in the Philippines. His Mom Lea tried to invest in Kyle’s future forcollege which saves money of 500PhP twice a month which started at the beginning of the second quarter. Whatwill be the accumulated value after he finished his Senior High School level assuming that the last contributionand his graduation will be held at the end of the second quarter with the equivalent of 8% cost of moneycompounded on the stated period of contribution?a. List the given variablesb. Formula & Complete solutionEngineering Economics Topic: Perpetuity A certain amount of investment was made annually for 10 years at an interest rate of 6%. On the 14th year, withdrawals of 10,000 per year can be made for 5 years and an infinite withdrawal of 5000 per year after. If the investment will stop at the 5th year, how much should be invested on the 5th year to get the same amount of withdrawals on the same period? All payments and withdrawals are made at the beginning of each year. note: Pls don't copy the answers from Chegg or any source and pls make the solution easy to understand. Thank you!7. Find the PV of $1000due in 5 years if the discount rate is 10% per year. (Assume this is a single payment not an annuity).
- Leon and Heidi decided to invest $3.500 annually for only the first seven years of their marriage. The first payment was made at age 20. If the annual interest rate is %15, how much accumulated interest and principal will they have at age 70? The accumulated interest and principal will equal ..........$ (round to the nearest dollar.)Engineering Economics A man deposits P58,454 each year into his savings account that pays 2% nominal interest compounded continuously. How much will be the worth of the account at the end of 5 years?A wealthy business Mr. Tan wants to start a permanent fund for supporting research directedtoward sustainability. The donor Mr. Henry plans to give equal amounts of money for each of thenext 5 years plus one now, so that P100,000 per year can be withdrawn each year forever. Beginning inyear 6. If the fund earns interest at a rate of 8% per year. How much money must be donated eachtime? What would be the formula and the cashflow diagram?