please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly A machine costing $21,000 to buy and $2,000 per year to operate will save mainly labor expenses in packaging overseven years. The anticipated salvage value of the machine at the end of seven years is $5,000.Click the icon to view the interest factors for discrete compounding when i=9% per year.(a) If a 9% return on investment (rate of return) is desired, what is the minimum required annual savings in labor fromthis machine?The minimum required annual savings in labor from this machine is $ (Round to the nearest dollar.)B

Step 1:Let the annual savings be A. This implies that at 9% rate of return the following must be…

Answered: A machine costing $21,000 to buy and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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GKX Industries expects sales of its hydraulic seals (in inch and metric sizes) to increase according to the cash flow sequence $70 + 4 k , where k is in years and cash flow is in $1000. (a) What is the amount of the cash flow in year 3?(b) What is the future worth of the entire cash flow series in year 10? Let i=10% per year.
The Pedernales Electric Cooperative estimates that the present worth now of income from an investment in renewable energy sources is $21,000,000. There will be no income in years 1 and 2, but in year 3 income will be $425,000, and thereafter it will increase according to an arithmetic gradient through year 15. What is the required gradient if the interest rate is 15% per year? Solve using factors. What is the required gradient? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
If the BOL Corporation deposits $20 million of its retained earnings in an aggressive stock ownership fund for only 1 year, what will be the difference in the total amount accumulated (i.e., F) at 18% per year, compounded monthly versus 18% per year simple interest?
A warehouse is initially rented for Php. 100, 000.00 a year. If the 10-year lease contract indicates that the rent increases by Php. 10,000.00 each year, determine the present worth of the lease. Money is worth 8% compounded monthly.
A bond issue of P200,000 in 10-year bonds, paying 16% nominal interest in semiannual payments, must be retired by the use of a sinking fund that earns 12% compounded monthly. What is the total semiannual expense?
Determine the size of your investment account 28 years from now (when you plan to retire) if you deposit $13,000 each year, beginning 1 year from now, and the account earns interest at a rate of 7% per year. What is the size of the investment account?
Use factors and a spreadsheet to determine the interest rate per period from the following equation: 0 = −40,000 + 8000(P∕A,i*,5) + 8000(P∕F,i*,8)
An asphalt road requires no upkeep until the end of 3 years when P70,000 will be needed for repairs. After this P90,000 will be needed for repairs at the end of each year for the next 4 years, then P120,000 at the end of each year for the next 5 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 12-year period? show a clear solution.
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A 12-cylinder heavy-duty diesel engine will have a guaranteed residual value of $1,000 in five years. Today (year 0) the equivalent worth of this engine is how much if the interest rate is 9% per year?
The average growth rate for a certain stock over the last 50 years is reported to be 12% compounded annually. If your grandfather had invested $600 in the stock 50 years ago, what would his investment be worth today?
Neighboring parishes in Louisiana have agreed to pool road tax resources already designated for bridge refurbishment. At a recent meeting, the engineers estimated that a total of $500,000 will be deposited at the end of next year into an account for the repair of old and safety-questionable bridges throughout the area. Further, they estimate that the deposits will increase by $100,000 per year for only 9 years thereafter, then cease. Determine the equivalent (a) present worth and (b) annual series amounts, if public funds earn at a rate of 5% per year. Draw the cash flow diagram and show complete solution. Make it clear ty

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