You are a well-paid engineer with a well-established international corporation. In planning for your retirement, you are optimistic and expect to make an investment of 10,000 in year 1 and increase this amount by 10% each year. How long will it take for your account to have a future worth of 2,000,000 at a rate of return of 7% per year?RKE & Associates is considering the purchase of a building it currently leases for 30,000 per year. The owner of the building put it up for sale at a price of 170,000, but because the firm has been a good tenant, the owner offered to sell it to RKE for a cash price of 160,000 now. If purchased now, how long will it be before the company recovers its investments at an interest rate of 15% per year?A start-up company that makes robotic hardware for CIM (computer integrated manufacturing) systems borrowed 1 million to expand its packaging and shipping facility. The contract required the company to repay the lender through an innovative mechanism called “faux dividend”, a series of uniform annual payments over a fixed period of time. If the company paid 290,000 per year for 5 years, what was the interest rate on the loan?Your grandmother deposited 10,000 in an investment account on the day you were born to help pay the tuition when you go to college. If the account was worth 50,000 seventeen years after she made the deposit, what was the rate of return on the account?A cash flow sequence starts in year 1 at 4000 and decreases by 300 each year through year 9. Determine (a) the value of the gradient ; (b) the amount of cash flow in year 5; and (c) the value of for the

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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You are a well-paid engineer with a well-established international corporation. In planning for your retirement, you are optimistic and expect to make an investment of 10,000 in year 1 and increase this amount by 10% each year. How long will it take for your account to have a future worth of 2,000,000 at a rate of return of 7% per year?
RKE & Associates is considering the purchase of a building it currently leases for 30,000 per year. The owner of the building put it up for sale at a price of 170,000, but because the firm has been a good tenant, the owner offered to sell it to RKE for a cash price of 160,000 now. If purchased now, how long will it be before the company recovers its investments at an interest rate of 15% per year?
A start-up company that makes robotic hardware for CIM (computer integrated manufacturing) systems borrowed 1 million to expand its packaging and shipping facility. The contract required the company to repay the lender through an innovative mechanism called “faux dividend”, a series of uniform annual payments over a fixed period of time. If the company paid 290,000 per year for 5 years, what was the interest rate on the loan?
Your grandmother deposited 10,000 in an investment account on the day you were born to help pay the tuition when you go to college. If the account was worth 50,000 seventeen years after she made the deposit, what was the rate of return on the account?
A cash flow sequence starts in year 1 at 4000 and decreases by 300 each year through year 9. Determine (a) the value of the gradient ; (b) the amount of cash flow in year 5; and (c) the value of for the

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