An engineer who is saving for her retirement plans to deposit $500 every quarter, starting one quarter from now, into an investment account. If the account pays interest at 6% per year, compounded semiannually, the total she will have at the end of 25 years is closest to: (a) $50, 000 (b) $56, 400 (c) $79, 700 (d) $112, 800 (e) None of the above a b C d
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- The first cost of a fairly large flood control dam is expected to be $5 million. The maintenance cost will be $60,000 per year, and a $100,000 outlay will be required every 5 years. At interest of 10%, find the EUAC of the dam project.Chemco Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproof anything. Overa 5-year period the costs associated with the pilot test product line were as follows: first cost of $43,000 and annual costs of $18,000. Annual revenue was $27000 and used equipment was salvaged for $4,000. What rate of return did the company make on this product?The rate of return the company made on the product is_______%WHICH IS MORE ECONOMICAL? USE METHOD OF COMPARISON OF ALTERNATIVES! In a cold storage plant, it is desired to determine whether to use insulation two inches thick or three inches thick in insulating the walls of the cold storage ware house. Heat absorb through the walls without insulation would cost P96.00 per year per squaremeter. A two-inch insulation will cost P30.40 per square meter and will cut out 89% of the loss. A three-inch insulation will cut out 92% of the loss and will cost P65.00 per square meter. Using a life 15 years for the insulation with no salvage value and a minimum attractive return of 8%, what thickness of insulation should be used?
- Chrysler is considering a cost reduction program. the suppliers must reduce the cost of the components that they furnish to Chrysler by 4% each year. program setup $ 13,500,000. the PW if the program is approved is $ ___ million. rnWhich among the materials will result in the most economical product and at the same time give the best results? Stockholders will be visiting a resins plant. It was decided by the management that they must paint the plant. Boysen paint cost P700 per gallon and covers 350 ft² per gallon. The manufacturer claims that it will last 4 years and can be applied at a rate of 100 ft² per hour.Dutchmaster paint costs P1000 per gallon and covers 500 ft² per gallon. It will last for 5 years and can be applied at a rate of 125 ft² per hour. If the painter is paid P40 per hour, which paint should be used?A publicly traded construction company reported that it just paid off a loan that it received 1 year earlier. If the total amount of money the company paid was $1.6 million and the interest rate on the loan was 10% per year, how much money had the company borrowed 1 year ago?
- Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost (investment cost) of $140,000.Annual maintenance expenses are expected to be $6,500 for the first 7 years and $9,000 each year thereafter up to 25 years. With an interest rate of 6%per year, what is the present worth cost of this project?Five years ago, an alumnus of a university donated $50,000 to establish a permanent endowment for scholarships. The first scholarships were awarded 1 year after the contribution. If the amount awarded each year, that is, the interest on the endowment, is $4500, the rate of return earned on the fund is closest to: (a) 7.5% per year (b) 8.5% per year (c) 9% per year (d) 10% per year. Chemical engineers at a Coleman Industries plant in the Midwest have determined that a small amount of a newly available chemical additive will increase the water repellency of Coleman’s tent fabric by 20%. The plant superintendent has arranged to purchase the additive through a 5-year contract at $7000 per year, starting 1 year from now. He expects the annual price to increase by 12% per year thereafter for the next 8 years. Additionally, an initial investment of $35,000 was made now to prepare a site suitable for the contractor to deliver the additive. Use i=15% per year to determine the equivalent total present worth for all these cash flows.