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To decrease the costs of operating a lock in a large river, a new system of operation is proposed. The system will cost $830,000 to design and build. It is estimated that it will have to be reworked every 10 years at a co $120,000. In addition, an expenditure of $80,000 will have to be made at the end of the fifth year for a new type of gear that will not be available until then. Annual operating costs are expected to be $70,000 for the firs years and $100.000 a year thereafter. Compute the capitalized cost of perpetual service at i = 7%. Click the icon to view the interest factors for discrete compounding when ;=7% per year. More Info The capitalized cost of perpetual service is $ million. (Round to three decimal places.) Single Payment Compound Present Amount Equal Payment Series Sinking Present Fund Factor Capital Recovery Worth Worth Compound Amount Factor (F/A, i, N) Factor Factor Factor Factor (F/P, i, N) (P/F, i, N) (A/F, i, N) (P/A, i, N) (A/P, i, N) 1.0700 0.9346 1.0000 1.0000 0.9346 1.0700 1.1449 0.8734 2.0700 0.4831 1.8080 0.5531 1.2250 0.8163 3.2149 0.3111 2.6243 0.3811 1.3108 0.7629 4.4399 0.2252 3.3872 0.2952 1.4026 0.7130 5.7507 0.1739 4.1002 0.2439 1.5007 0.6663 7.1533 0.1398 4.7665 0.2098 1.6058 0.6227 8.6540 0.1156 5.3893 0.1856 1.7182 0.5820 10.2508 0.0975 5.9713 0.1675 1.8385 0.5430 11.9780 0.0835 6.5152 0.1535 1.9672 0.5083 13.8164 0.0724 7.0236 0.1424 2.1049 0.4751 15.7836 0.0634 7.4987 0.1334 ZIN346 2 5 7749 10 11

To decrease the costs of operating a lock in a large river, a new system of operation is proposed. The system will cost $830,000 to design and build. It is estimated that it will have to be reworked every 10 years at a co $120,000. In addition, an expenditure of $80,000 will have to be made at the end of the fifth year for a new type of gear that will not be available until then. Annual operating costs are expected to be $70,000 for the firs years and $100.000 a year thereafter. Compute the capitalized cost of perpetual service at i = 7%. Click the icon to view the interest factors for discrete compounding when ;=7% per year. More Info The capitalized cost of perpetual service is $ million. (Round to three decimal places.) Single Payment Compound Present Amount Equal Payment Series Sinking Present Fund Factor Capital Recovery Worth Worth Compound Amount Factor (F/A, i, N) Factor Factor Factor Factor (F/P, i, N) (P/F, i, N) (A/F, i, N) (P/A, i, N) (A/P, i, N) 1.0700 0.9346 1.0000 1.0000 0.9346 1.0700 1.1449 0.8734 2.0700 0.4831 1.8080 0.5531 1.2250 0.8163 3.2149 0.3111 2.6243 0.3811 1.3108 0.7629 4.4399 0.2252 3.3872 0.2952 1.4026 0.7130 5.7507 0.1739 4.1002 0.2439 1.5007 0.6663 7.1533 0.1398 4.7665 0.2098 1.6058 0.6227 8.6540 0.1156 5.3893 0.1856 1.7182 0.5820 10.2508 0.0975 5.9713 0.1675 1.8385 0.5430 11.9780 0.0835 6.5152 0.1535 1.9672 0.5083 13.8164 0.0724 7.0236 0.1424 2.1049 0.4751 15.7836 0.0634 7.4987 0.1334 ZIN346 2 5 7749 10 11

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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To decrease the costs of operating a lock in a large river, a new system of operation is proposed. The system will cost $830,000 to design and build. It is estimated that it will have to be reworked every 10 years at a cost of $120,000. In addition, an expenditure of $80,000 will have to be made at the end of the fifth year for a new type of gear that will not be available until then. Annual operating costs are expected to be $70,000 for the first 15 years and $100,000 a year thereafter. Compute the capitalized cost of perpetual service at i= 7%. Click the icon to view the interest factors for discrete compounding when i=7% per year. - X More Info The capitalized cost of perpetual service is $ million. (Round to three decimal places.) Single Payment Compound Amount Factor (F/P, i, N) 1.0700 Present Worth Factor Compound Amount Factor (F/A, i, N) Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) 1.0000 0.4831 N (P/F, i, N) (P/A, i, N) 0.9346 1 0.9346 1.0000 2 1.1449 0.8734 2.0700 1.8080 3 1.2250 0.8163 3.2149 0.3111 2.6243 4 1.3108 0.7629 4.4399 0.2252 3.3872 5 1.4026 0.7130 5.7507 0.1739 4.1002 6 1.5007 0.6663 7.1533 0.1398 4.7665 7 8.6540 0.1156 5.3893 8 1.6058 1.7182 1.8385 10.2598 0.0975 5.9713 0.6227 0.5820 0.5439 0.5083 11.9780 0.0835 6.5152 10 1.9672 13.8164 0.0724 7.0238 11 2.1049 0.4751 15.7836 0.0834 7.4987 12 2.2522 0.4440 17.8885 0.0559 7.9427 13 2.4098 0.4150 20.1406 0.0497 8.3577 14 2.5785 0.3878 22.5505 0.0443 8.7455 15 2.7590 0.3624 25.1290 0.0398 9.1079 16 2.9522 0.3387 27.8881 0.0359 9.4488 17 3.1588 0.3166 30.8402 0.0324 9.7632 18 0.2959 33.9990 0.0294 10.0591 3.3799 3.6165 0.2765 37.3790 0.0268 10.3356 19 20 3.8697 0.2584 40.9955 0.0244 10.5940 Capital Recovery Factor (A/P, i, N) 1.0700 0.5531 0.3811 0.2952 0.2439 0.2098 0.1856 0.1675 0.1535 0.1424 0.1334 0.1259 0.1197 0.1143 0.1098 0.1059 0.1024 0.0994 0.0968 0.0944
Transcribed Image Text:To decrease the costs of operating a lock in a large river, a new system of operation is proposed. The system will cost $830,000 to design and build. It is estimated that it will have to be reworked every 10 years at a cost of $120,000. In addition, an expenditure of $80,000 will have to be made at the end of the fifth year for a new type of gear that will not be available until then. Annual operating costs are expected to be $70,000 for the first 15 years and $100,000 a year thereafter. Compute the capitalized cost of perpetual service at i= 7%. Click the icon to view the interest factors for discrete compounding when i=7% per year. - X More Info The capitalized cost of perpetual service is $ million. (Round to three decimal places.) Single Payment Compound Amount Factor (F/P, i, N) 1.0700 Present Worth Factor Compound Amount Factor (F/A, i, N) Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) 1.0000 0.4831 N (P/F, i, N) (P/A, i, N) 0.9346 1 0.9346 1.0000 2 1.1449 0.8734 2.0700 1.8080 3 1.2250 0.8163 3.2149 0.3111 2.6243 4 1.3108 0.7629 4.4399 0.2252 3.3872 5 1.4026 0.7130 5.7507 0.1739 4.1002 6 1.5007 0.6663 7.1533 0.1398 4.7665 7 8.6540 0.1156 5.3893 8 1.6058 1.7182 1.8385 10.2598 0.0975 5.9713 0.6227 0.5820 0.5439 0.5083 11.9780 0.0835 6.5152 10 1.9672 13.8164 0.0724 7.0238 11 2.1049 0.4751 15.7836 0.0834 7.4987 12 2.2522 0.4440 17.8885 0.0559 7.9427 13 2.4098 0.4150 20.1406 0.0497 8.3577 14 2.5785 0.3878 22.5505 0.0443 8.7455 15 2.7590 0.3624 25.1290 0.0398 9.1079 16 2.9522 0.3387 27.8881 0.0359 9.4488 17 3.1588 0.3166 30.8402 0.0324 9.7632 18 0.2959 33.9990 0.0294 10.0591 3.3799 3.6165 0.2765 37.3790 0.0268 10.3356 19 20 3.8697 0.2584 40.9955 0.0244 10.5940 Capital Recovery Factor (A/P, i, N) 1.0700 0.5531 0.3811 0.2952 0.2439 0.2098 0.1856 0.1675 0.1535 0.1424 0.1334 0.1259 0.1197 0.1143 0.1098 0.1059 0.1024 0.0994 0.0968 0.0944
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