Problem 1 An interest rate equal to 7% compounded annually: (a) If $20,000 is borrowed for 5 years what total amount must be paid back? (b) How much of the total amount repaid represents interest? Problem 2 If you purchase a $300,000 machine 5 years in the future with an interest rate equal to 7% compounded annually. How much money is needed today? Problem 3 A piece of equipment is estimated to cost $86,000 new and to have a useful life of 5 years with a salvage value of $14,000. The company believes that a realistic MARR would be 10%. Taxes, insurance, and storage should amount to an additional 8%, which results in an overall cost of money of 10 + 8, or 18%. To recover ownership cost, what is the appropriate amount per hour that must be charged for the equipment usage if the expected use rate of the equipment is 1,200 hours per year? Problem 4 A contractor is considering the following three alternatives: a. Purchase a new microcomputer system for $15,000. The system is expected to last 6 years with salvage value of $1,000. b. Lease a new microcomputer system for $3,000 per year, payable in advance. The system should last 6 years. c. Purchase a used microcomputer system for $8,200. It is expected to last 3 years with no salvage value. Use a common-multiple-of-lives approach. If MARR of 8% is used, which alternative should be selected using a discounted present worth analysis? If the MARR is 12%, which alternate should be selected? Problem 5 The moist weight of 0.1 ft3 of soil is 12.2 lb. If the moisture content is 12% and the specific gravity of the soil solids is 2.72, find the following: 1. Moist unit weight. 2. Dry unit weight. 3. Void ratio. 4. Porosity. 5. Degree of saturation. 6. Volume occupied by water. Problem 6 The results of standard Proctor test are given as shown in the table. Determine the maximum dry unit weight of compaction and optimum moisture content. Also determine the moisture contents required to achieve 95% of y d (max). If the field dry unit weight
Problem 1 An interest rate equal to 7% compounded annually: (a) If $20,000 is borrowed for 5 years what total amount must be paid back? (b) How much of the total amount repaid represents interest? Problem 2 If you purchase a $300,000 machine 5 years in the future with an interest rate equal to 7% compounded annually. How much money is needed today? Problem 3 A piece of equipment is estimated to cost $86,000 new and to have a useful life of 5 years with a salvage value of $14,000. The company believes that a realistic MARR would be 10%. Taxes, insurance, and storage should amount to an additional 8%, which results in an overall cost of money of 10 + 8, or 18%. To recover ownership cost, what is the appropriate amount per hour that must be charged for the equipment usage if the expected use rate of the equipment is 1,200 hours per year? Problem 4 A contractor is considering the following three alternatives: a. Purchase a new microcomputer system for $15,000. The system is expected to last 6 years with salvage value of $1,000. b. Lease a new microcomputer system for $3,000 per year, payable in advance. The system should last 6 years. c. Purchase a used microcomputer system for $8,200. It is expected to last 3 years with no salvage value. Use a common-multiple-of-lives approach. If MARR of 8% is used, which alternative should be selected using a discounted present worth analysis? If the MARR is 12%, which alternate should be selected? Problem 5 The moist weight of 0.1 ft3 of soil is 12.2 lb. If the moisture content is 12% and the specific gravity of the soil solids is 2.72, find the following: 1. Moist unit weight. 2. Dry unit weight. 3. Void ratio. 4. Porosity. 5. Degree of saturation. 6. Volume occupied by water. Problem 6 The results of standard Proctor test are given as shown in the table. Determine the maximum dry unit weight of compaction and optimum moisture content. Also determine the moisture contents required to achieve 95% of y d (max). If the field dry unit weight
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:Problem 1
An interest rate equal to 7% compounded annually:
(a) If $20,000 is borrowed for 5 years what total amount must be paid back?
(b) How much of the total amount repaid represents interest?
Problem 2
If you purchase a $300,000 machine 5 years in the future with an interest rate equal to
7%
compounded annually. How much money is needed today?
Problem 3
A piece of equipment is estimated to cost $86,000 new and to have a useful life of 5
years
with a salvage value of $14,000. The company believes that a realistic MARR would
be
10%. Taxes, insurance, and storage should amount to an additional 8%, which results
in
an overall cost of money of 10 + 8, or 18%. To recover ownership cost, what is the
appropriate amount per hour that must be charged for the equipment usage if the
expected
use rate of the equipment is 1,200 hours per year?
Problem 4
A contractor is considering the following three alternatives:
a. Purchase a new microcomputer system for $15,000. The system is expected to
last 6 years with salvage value of $1,000.
b. Lease a new microcomputer system for $3,000 per year, payable in advance.
The system should last 6 years.
c. Purchase a used microcomputer system for $8,200. It is expected to last 3 years
with no salvage value.
Use a common-multiple-of-lives approach. If MARR of 8% is used, which alternative
should be selected using a discounted present worth analysis? If the MARR is 12%,
which alternate should be selected?
Problem 5
The moist weight of 0.1 ft3 of soil is 12.2 lb. If the moisture content is 12% and the
specific gravity of the soil solids is 2.72, find the following:
1. Moist unit weight.
2. Dry unit weight.
3. Void ratio.
4. Porosity.
5. Degree of saturation.
6. Volume occupied by water.
Problem 6
The results of standard Proctor test are given as shown in the table. Determine the
maximum dry unit weight of compaction and optimum moisture content. Also
determine
the moisture contents required to achieve 95% of y
d (max). If the field dry unit weight
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