The future worth in year 8 for the cash flows shown is $28,00O. At an interest rate of 9% per year, what is the value, x, of the cash flow in year 4? 1 3 1000 1200 1400 1800 2000 2200 2400 The value of x is determined to be $

The future worth in year 8 for the cash flows shown is $28,00O. At an interest rate of 9% per year, what is the value, x, of the cash flow in year 4? 1 3 1000 1200 1400 1800 2000 2200 2400 The value of x is determined to be $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: If $300 is earned in three months on an investment of $12000, what is the annual rate of simple…

A: Correct Answer: The annual rate of simple interest is 10%

Q: Maintenance cost for a new piece of manufacturing equipment is expected to be $5,000 in the first…

A: Given that; A = $5,000 G = $250 i = 10% n = 5 P = ?

Q: B/ Chemical engineers at a Coleman Industries plant in the Midwest have determined that a small…

A: The commonly held hypothesis that there is a higher benefit to receiving a sum of money now rather…

Q: The present sum needed to provide for an annual withdrawal of $2,000 for 20 years beginning 5 years…

A: According to question, Annual withdrawal (C) = $2,000 Number of annual payment (n) = 20 First…

Q: A company purchased a CAD software for $5000 now and the annual payments of $500 per year for 6…

A: Preset worth:Present worth can be calculated as follows:

Q: A design-construct-operate (DSO) company signed a contract to operate certain industrial wastewater…

A: Present worth which has been discounted at a market interest rate, is the current value of money…

Q: A company is planning to make s deposit such that each one 6% larger than the preceding one. How…

Q: Q2.1: An engineer received a bonus of $10,000 that he will invest now. He wants to calculate the…

A: P = $10,000 F = ? i = 9% per year n = 20 years

Q: A customer deposits his money in a bank for 10 million dollars for 2 years. If the deposit interest…

A: The value that depicts the value of the asset at a date in the future based on the rate of growth is…

Q: American Gas Products manufactures a device called a Can-Emitor that empties the contents of old…

A: P = present investment A = annual savings = $90,000 i = interest rate = 205 or 0.2 n = time period…

Q: An Industrial Engineer made a modification to a chip manufacturing process that will save the…

A: Given that the company saves $10,000 per year and there is an interest rate of 8%, the compound…

Q: A company purchased new equipment for $250,000 now and annual operations and maintenance costs of…

A: present worth is the amount of money today is worth more than that same amount in the future here we…

Q: Marcus took out a loan in his senior year of college with an annual simple interest rate of 4% per…

A: In an economy, people interact to make various economic, financial and business deals with each…

Q: How many years are required for P10,000.00 to increase to P20,000.00 if invested at 9% per year…

A: Given present value = 10000 Future value = 20000 As the amount doubles, we will use the rule of 72

Q: A friend tells you she has saved for 5 years and has a present sum of $15,000 , which earned at the…

A: Present sum = 15000 $ Time = 5 years Interest rate = 8 % compounded quarterly Value at 5 years =…

Q: Thank you !!!!!! Sherry expects to deposit $2000 now, $1000 4 years from now, and $2500 7 years…

A: *Answer:

Q: Anna invested $5,500 per year for 15 years. The future value (at the end of the 15 year period) was…

A: here we calculate the earning of anna near about 7 year by using the future worth method so the…

Q: what is the accumulated amount after 5 years of $2000 invested at the rate of 10% per year…

A: F=P(1+r/m)^mt F-Future amount P-Present amount r-nominal annual interest rate m-number of…

Q: Mr Robles plans to deposit P500 at the end of each month for 10yrs at 12% annual interest,…

A: Future value means the value of the asset at a future time period.

Q: At an interest rate of 10% per year, the perpetual annual cost of $70000 now. What will be the value…

A: The interest rate = 10% Present cost = $70000 Time period = 10 years

Q: If an engineer invested $15,000 on January 1, 1991, into a retirement account that earned 6% per…

A: The time period is denoted by ‘n’ and the interest rate is denoted by ‘i’. It is given that the…

Q: What is the future equivalent of $10000 invested for 4 1/4 years at 8% simple interest per year?

A: Futures equivalent is the quantity of futures contracts expected to match the risk profile of a…

Q: Southwestern Moving and Storage wants to have enough money to purchase a new tractor-trailer in 3…

A: It is given that the firm is required to purchase a new tractor-trailer which costs a sum of…

Q: Two debts, the first of $1800 due six months ago and the second of $1700 borrowed one year ago for a…

A: Hi! thanks for the questions but as per the guidelines we answer only one question at one time.…

Q: Wilson Bryant Air Conditioning, a Middle Georgia HVAC company, wanted to build a web-based project…

A: Cash flow is a metric that shows how much money a company has brought in or spent over a certain…

Q: NRG Energy plans to construct a giant solar plant in Santa Teresa, NM to supply electricity to…

A: Answer To calculate the annual payment we use the following formula. A=Pi(1+i)n(1+i)n-1

Q: A pilot plant for conducting research related to reverse osmosis concentrate recovery via lime…

A: The rate of interest is 6% per year, or 0.5% per month. Initial cost is calculated as: initial…

Q: The present worth of an increasing geometric gradient is $23,632. The interest rate is 6% per year…

A: The present worth (P) is $23,632 per year. The first year cash flow (CF1) is $3,000. Cash flow…

Q: For the cash flow diagram sbown below, the value of x that will make the future worth in year 8…

A: Future value of given cash flow is $147,458 i=10% n=8 years

Q: A student deposits $1000 in a savings account that pays interest at the rate of 6% per year,…

A: A student deposits $1000 in a savings account that pays interest at the rate of 6% per year,…

Q: What is the Present Worth of $2,000 costs in year one, increasing by $500 per year for years 2 thru…

A: In economics, present value refers to the current value of a future stream of cash flows. The future…

Q: Hewlett-Packard has completed a study indicating that $50,000 in reduced maintenance this year…

A: Money interest rate is any declared rate of interest. PV (Present value) is today’s value of future…

Q: Find the present worth of cash flows of $1000 that start now (time 0) and continue through year 10,…

A: Given the information: Cash flow = $1000 n = 10 years interest rate, r = 10%

Q: A company that manufactures ultrasonic wind sensors invested $1.5 million 2 years ago to acquire…

A: The investment (I) is %1,500,000. Future value (F) is $6,000,000. Interest rate (i) is 25%. Then the…

Q: A pharma company uses spectrophotometers to analyze the concentration of products. One of the…

A: Fixed costs include any number of expenses, including rental lease payments, salaries, insurance,…

Q: "The heat loss through the exterior walls of a certain poultry processing plant is estimated to cost…

A: Solution is given below

Q: How much will Sonja have in a savings account 12 years from now if she deposits $3000 now and $5000…

A: Amount of Sonja will calculated by future value , because the amount which is invested by an…

Q: For the cash flow diagram shown, determine the value of G that will make the present worth in year 0…

A: Given: PW at year 0=$2500 i=10%

Q: An interest rate of 5% per year, compounded monthly, is nearest to Enter the value in number four…

A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…

Q: How much money must an electrical contractor deposit every year in her savings account starting 1…

A: Given information is: Future Value (F)=$9,000 Interest rate (i)= 7.5% Time period (N)= 5 years To…

Q: Eight energy corporations made plans to increase their combined spending on efficiency programs to…

A: Future Worth=A×(1+i)n-1i Where; A=Annual payment i= interest rate n= Number of years Here; A= $50…

Q: Mrs. Reyes accumulated 4,000 shares of company stock, in the manufacturing company where have worked…

A: Given: Mrs. Reyes accumulated shares of company stock to = 4,000 Total working years = 20 Each stock…

Q: What is the Present Worth of $2,000 costs in year one, increaing by $500 per year for years 2…

A: Present value is the current value of a future stream of cash flow. The time value of money…

Q: The current cost of liability insurance for a consulting firm is $65,000 per year. If the cost is…

A: Liability Insurance — Payment of insurance or services rendered on behalf of an insured for loss…

Q: Lorilei Cruzado just purchased new CAD software for P 5000 now and monthly payments of P 500 for 6…

A: To find the present worth, we discount the future values with respect to the interest rate.

Q: How much money should a bank be willing to loan a real estate developer who will repay the loan by…

A: P = F / (1 + i) n Where, P is the present worth F is the future worth n is number of years i is the…

Q: What amount of money deposited 50 years ago at 8% interest would now provide a perpetual payment of…

A: What amount of money deposited 50 years ago at 8% interest would now provide a perpetual payment…

Q: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual…

A: An engineer withdraws an equal annual amount of = $2,000Time period = 5 yearsAnother annual…

Q: Syringe pumps oftentimes fail because reagents adhere to the ceramic piston and deteriorate the…

A: The present worth of annuity can be calculated as follows:

Question

The future worth in year 8 for the cash flows shown is $28,00O. At an interest rate of 9% per year, what is the value, x, of the cash flow
in year 4?
1
3
1000
1200
1400
1800
2000
2200
2400
The value of x is determined to be $

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

In an effort to save money for early retirement, an environmental engineering colleague plans to deposit $1200 per month, starting 1 month from now, into a fixed rate account that pays 8% per year, compounded semiannually. How much will be in the account at the end of 25 years?
For the cash flow diagram below, what value of x will make the total equivalentworth in year 7 equal to $8000 at i = 10% per year?
How much can Wells Fargo lend to a developer who will repay the loan by selling 6 view lots at $190,000 every 2 years from now? Assume the bank will lend at a nominal 14% per year, compounded semiannually.
Cisco’s gross revenue (the percentage of total revenue left after subtracting the cost of goods sold) was 70.1% of total revenue over a 4-year period. If the total revenue per year was $5.8 billion for the first two years and $6.2 billion for the last 2, find the future worth of the gross revenue series in year 4 at an interest rate of 14% per year.
An engineer deposits $8,000 in year 4, $8,500 in year 5, and amounts increasing by $500 per year through year 10. At an interest rate of 1% per year, the equation to find the present worth in year 0 is: (a) 18000(P/A i, 7) + 500(P/G i, 7)](P/F i, 3) (b) [8000(P/A i, 7) + 500(P/G i, 7)] (P/F i, 4) (c) [8000(P/A i, 6) + 500(P/G i, 6)](P/F i, 3) (d) [8000(P/A i, 6) + 500(P/G i, 6)] (P/F i, 4)
How much could BTU Oil & Gas Fracking afford to spend on new equipment every start of the year for 3 years, if it expects a profit of P50 million at the beginning of the 3rd year, assumed rate of return is 20% per year. Provide cash flow diagram.ANS. 13,736,263.74
Compare the accumulated values at the end of 10 years if P100 is invested at the rate of 12% per year compounded annually, semi-annually, quarterly, bi-monthly, monthly, and daily.
An Australian - based energy drink manufacturer plans to expand its international markets to the untapped Middle - East region. The company expects that the expansion will bring additional net income of 48024 in the first year of the operation and amounts increasing by $ 5101 for the next 13 years. What is the annual equivalent amount of the net income at an interest rate of 12% per year?
Calculate the present worth of 10 uniform payments of $8000 that begin 1 year from now at an interest rate of 10% per year.
Tacozza Electric, which manufactures brush dc servo motors, budgeted $95,000 per year to pay for specific components over the next 5 years. If the company expects to spend $55,000 in year 1, how much of a uniform (arithmetic) increase each year is the company expecting in the cost of this part? Assume the company uses an interest rate of 10% per year.
Centrum Water & Gas provides standby power to pumping stations using diesel-powered generators. An alternative is the use of natural gas to power the generators, but it will be a few years before the gas is available at remote sites. Centrum estimates that by switching to gas, it will save $15,000 per year, starting 3 years from now through the end of year 20. At an interest rate of 8% per year, determine the present worth of the projected savings.
A construction and engineering company plans on opening an office in Dubai. Over the 25 years the office is expected to have a positive cash flow of $250,000 per year. At an interest rate of 12%, what is the equivalent present worth?