Contemporary Engineering Economics Plus MyLab Engineering with eText -- Access Card Package (6th Edition)
6th Edition
ISBN: 9780134162690
Author: Chan S. Park
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 16, Problem 7P
To determine
Calculate the annual fee.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
what is the EUAC corresponding to an overhaul cost of 4000 at year 3 for a machine with 7 years of useful life? use i=8%
Determine the breakeven resale price 15 years from now of an apartment house that can be bought today for $250,000. Its annual net income is $22,000. The owner wants a 10% annual return on her investment.
A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $58,548, maintenance costs that start at $5,000 at end-of-year (FOY) one and increase by $1,000 for each of the next four years, and then remain constant for the following five years; savings of $20,007 per year (EOY 1-10); and finally a resale value of $33,311 at EOY 10. If the project has a 10-year life and the firm's MARR is 10% per year, what is the present worth of the project?
Chapter 16 Solutions
Contemporary Engineering Economics Plus MyLab Engineering with eText -- Access Card Package (6th Edition)
Knowledge Booster
Similar questions
- A ₱2500 computer system can be leased for ₱79 per month for 3 years. After 3 years, it can be purchased for ₱750. This is also the salvage value if the system was purchased originally. What is the effective annual rate for leasing the computer? Solutions manual with formula we are used. Without using Microsoft Excel.arrow_forwardA junior PM determines the present worth of a project to be $56,417. He misplaced the full set of calculations but knows that the project lasts 5 years with a first cost of $180,000, and a set of equal cash flows at the end of each year. MARR used was 10%. What is the IRR for this project?arrow_forwardThe first-year maintenance cost for a new Machine is estimated to be P5000, and it increases at a uniform rate of 8% per year. Using an 10% interest rate, calculate the present worth of cost of the first 10 years of maintenance.arrow_forward
- Compute the annual equivalent repair cost over a 5 year life if a typewriter is warranted for 2 years and has estimated repair cost of $1000 annually. Use i = 10%. Shoe your solution.arrow_forwardDRAW THE CASH FLOW DIAGRAM Company A is considering two alternatives. Machine A has a first cost of $15,000 and a salvage value of $2,000. The life is 6 years and it has an annual maintenance and operating cost of $1,000. Machine B has a first cost of $18,000, a life of 8 years and no salvage value. The annual operating cost is $800. Which machine should be used to justify the purchase of such machine if money is worth 7% and calculate the difference between the equivalent annual worths.arrow_forwardA local county is considering purchasing somedump trucks for the trash pickups. Each truck will cost$55,000 and have an operating and maintenance costthat starts at $18,000 during the first year and increasesby $3,000 per year thereafter. Assume the salvagevalue is $12,000 at the end of 5 years and the interestrate is 10%. To meet the equivalent annual cost of owning and operating each truck over 5-year planning horizon, what is the required annual trash collection fees?arrow_forward
- A specialized automatic machine costs $300.000 and is expected to save $111,837 50 per year while inoperation. Using a 12% interest rate, what is the discounted payback period?Select onea. 4b 8c.5d 7e 6A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional$8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifthyear through the fifteenth year At the end of 15 years the company can be sold for $33,000The ERR when externeal reinvestment rate per period is 12%Select onea. 10.74%b. 12.3%c. 19.25%d. 8.5% Ans both.. otherwise don't give ansarrow_forwardwhat should the resale value of a machine if it is bought at 100000 that will produce net income, after operating expenses of 10000 per year at the end of 4 years to justify the investments you must make a 15% annual return on the investment.arrow_forwardBrooke is evaluating two alternatives for improving the exterior appearance of her Victorian-style house that she is remodeling inside. She plans to keep this as her home for 20 more years. The house can be completely painted at a cost of $17,500. The paint is expected to remain attractive for 5 years, at which time repainting will be necessary. Every time the building is repainted (i.e., in years 5, 10, and 15), the cost will increase by 20% over the previous time. As an alternative, the exterior can be covered with a vintage-appearing vinyl-coated siding now and again 10 years from now at a cost 31% greater than the present cost of the siding. At a MARR of 10% per year, what is the maximum amount that Brooke should spend now on the siding alternative so that the two alternatives will just break even? Solve using factors. The maximum amount that Brooke should spend now on the siding alternative is $ Note:- Do not provide handwritten solution. Maintain accuracy and quality in your…arrow_forward
- Urgently need. You are considering purchasing a dump truck. The truck will cost $75,000 and have operating and maintenance costs that start at $18,000 the first year and increases by $2,000 per year. Assume that the salvage value at the end of five years is $22,000 and interest rate is 15%. What is the capital recovery cost with return at 15% over the 5 years?arrow_forwarda machine costs 150000 and will have a scrap value of 10% of its initial cost when retired at the 10th year . if money worth is 8% what is the capitalized cost?arrow_forwardAs part of your inheritance, you received a bond that will pay interest of $700 every 6 months for 15 years. If the coupon rate is 7% per year, the face value of the bond is (a) $10,000 (b) $20,000 (c) $30,000 (d) $40,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education