ENGINEERING ECONOMY <LL CUSTOM>
ENGINEERING ECONOMY <LL CUSTOM>
8th Edition
ISBN: 9781260503944
Author: Blank
Publisher: MCG CUSTOM
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Chapter 1, Problem 41P
To determine

Calculate the missing values.

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Northwest Iron and Steel is considering getting involved in electronic commerce. A modest e-commerce package is available for $30,000. The company wants to recover the cost in 2 years. Find the equivalent amount of new revenue that must be realized every 6 months at an interest rate of 3% per quarter using (a) factor formula, and (b) a single-cell spreadsheet function that includes an EFFECT function.
At a compound interest rate of 10% per year, the amount that P10,000 one year ago is equivalent to now is closest to:   A. P 8,264 B. P 9,091 C. P 11,000 D. P 12,100
Corrosion problems and manufacturing defects rendered a gasoline pipeline between El Paso, TX, and Phoenix, AZ, subject to longitudinal weld seam failures. The pressure was reduced to 80% of the design value. If the reduced pressure resulted in delivery of less product valued at $100,000 per month, what will be the value of the lost revenue after a 2-year period at an interest rate of 15% per year, compounded continuously?
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