ENGINEERING ECONOMY
ENGINEERING ECONOMY
8th Edition
ISBN: 9781260606966
Author: Blank
Publisher: MCG
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Chapter 1, Problem 26P
To determine

Draw the cash flow diagram.

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a) Cash Flow Diagram b) manual solution Company E 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 the company for a cash price of $160,000 now. If purchased now, how long will it be before the company recovers its investment at an interest rate of 11% per year?
A company has been tracking the average inspection cost on a robotics line for 8 years. Cost averages were steady at $200 per completed unit for the first 4 years, but have increased by $50 per unit for eacch of the last 4 years. What is the general relation used to calculate total present worth in year 0?
A $10,000 loan amortized over 5 years at an interest rate of 10% per year requires payments of $2638 to completely remove the loan when interest is charged on the unrecovered balance of the principal. If interest is charged on the original principal instead of the unrecovered balance, what is the loan balance after 5 years, provided the same $2638 payments are made each year?
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