Engineering Fundamentals: An Introduction to Engineering
6th Edition
ISBN: 9780357112311
Author: Saeed Moaveni
Publisher: Cengage Learning US
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 20, Problem 24P
To determine
Check whether the company will invest in the project or not.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A contract has been signed to lease a building at P250,000 per year with an annual increase of P2,500 for 10 years. Payments are to be made at the end of each year starting 1 year from now. The prevailing interest rate is 8%. What lump sum paid today would be equivalent to the 10-year lease-payment plan?
Kindly solve this Engineering economy problem. Thank you
Calculate the capitalized cost of a project that has an initial cost of P3,500,000 and an additional investment cost of P2,000,000 at the end of every twelve years. The annual operating cost will be P80,000 at the end of every year for the first four years and P175,000 thereafter. In addition, there is expected to be a recurring major rework cost of P250,000 every 14 years. Assume i = 13%.
Kindly answer this Engineering economy problem and show the cash flow diagram.
The purchase cost of an excavating machine is $200,750. After a useful life of 6 years, it is assumed the equipment will be sold for $45,000. Assume interest of 9.5% for borrowing money and 3.2% for taxes, insurance and storage. Using the sinking fund depreciation method, calculate the annual ownership cost in Year 2 and the cost per hour in Year 1, assuming the equipment will be used for 2000 hr/year.
Chapter 20 Solutions
Engineering Fundamentals: An Introduction to Engineering
Ch. 20.4 - Prob. 1BYGCh. 20.4 - Prob. 2BYGCh. 20.4 - Prob. 3BYGCh. 20.4 - Prob. 4BYGCh. 20.4 - Prob. 5BYGCh. 20.4 - Prob. BYGVCh. 20.5 - Prob. 1BYGCh. 20.5 - Prob. 2BYGCh. 20.5 - Prob. 3BYGCh. 20.5 - Prob. BYGV
Ch. 20.8 - Prob. 1BYGCh. 20.8 - Prob. 2BYGCh. 20.8 - Prob. 3BYGCh. 20 - Prob. 1PCh. 20 - Prob. 2PCh. 20 - Prob. 3PCh. 20 - Prob. 4PCh. 20 - Prob. 5PCh. 20 - Prob. 6PCh. 20 - Prob. 7PCh. 20 - Prob. 8PCh. 20 - Prob. 9PCh. 20 - Prob. 10PCh. 20 - Prob. 11PCh. 20 - Prob. 12PCh. 20 - Prob. 13PCh. 20 - Prob. 14PCh. 20 - Prob. 15PCh. 20 - Prob. 16PCh. 20 - Prob. 17PCh. 20 - Prob. 18PCh. 20 - Prob. 19PCh. 20 - Prob. 20PCh. 20 - Prob. 21PCh. 20 - Prob. 22PCh. 20 - Prob. 23PCh. 20 - Prob. 24PCh. 20 - Prob. 25PCh. 20 - Prob. 26PCh. 20 - Prob. 27PCh. 20 - Prob. 28PCh. 20 - Prob. 29PCh. 20 - Prob. 30PCh. 20 - Prob. 31PCh. 20 - Prob. 32PCh. 20 - Prob. 33PCh. 20 - Prob. 34PCh. 20 - Prob. 35PCh. 20 - Prob. 36PCh. 20 - Prob. 37PCh. 20 - Prob. 38PCh. 20 - Prob. 39PCh. 20 - Prob. 40PCh. 20 - Prob. 41PCh. 20 - Prob. 42PCh. 20 - Prob. 43PCh. 20 - Prob. 44PCh. 20 - Prob. 45PCh. 20 - Prob. 46PCh. 20 - Prob. 47PCh. 20 - Prob. 48PCh. 20 - Prob. 49PCh. 20 - Prob. 50PCh. 20 - Prob. 52PCh. 20 - Prob. 53PCh. 20 - Prob. 54P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.Similar questions
- Calculate the capitalized cost of a project that has an initial cost of P3,000,000 and an additional investment cost of P1,000,000 at the end of every year ten years. The annual operating cos will be P100,000 at the end of every year for the first four years and P160,000 thereafter. In addition, there is expected to be a recurring major rework cost of P300,000 every 13 years. Assume i=15%. Answer: P4,281,990arrow_forwardENGINEERING ECONOMICS Dr. Max borrowed P3, 500, 000 at 8% for 10 years. The loan stipulated that the following payments have to be made: P150, 000 at the end of the 1styear to the 3rd year; P200, 000 at the end of the 4th to the 5th year; P300, 000 at the end of the 6th to the 7th year; P400, 000 at the end of the 8th to the 9th year; and a final payment at the end of the 10th year. What should be the amount (Q) of the final payment?arrow_forwardExxonMobil is using a recently installed remotely controlled system to detect underwater leakage from offshore platforms. Assume this system costs $3 million to install and an estimated $200,000 per year for all materials, operating, personnel, and maintenance costs. The expected life is 10 years. An engineer wants to estimate the total revenue requirement for each 6-month period that is necessary to recover the investment, interest, and annual costs. Find this semiannual A value if capital funds are evaluated at 8% per year compounded semiannually.arrow_forward
- Eng David is required to pay 57500pesos at the end of 30 days of 60000pesos at the end of 80 days.determine the rate of interest per annum.arrow_forward8. Calculate the capitalized cost of a project that has an initial cost of P 3,000,000 and an additional cost of P 1,000,000 at the end of every ten years. The annual operating cost will be P 100,000 at the end of every year for the first four years and P 160,000 thereafter. In addition, there is expected to be a recurring major rework cost of P 300,000 every 13 years. Assume i = 15%. A. P 2,481,539 B. P 1,935,241 C. P 4,281,936 D. P 3,694,182arrow_forwardFind the answers of the following: 1. Mr. Reyes borrows P600,000 at 12% compounded annually agreeing to repay the loan in 15 equal annual payments. How much of the original principal is still unpaid after he has made the 8th payment? 2. The purchased price of the equipment is P12,000 and its estimated maintenance costs are P500 for the first year, P1,500 for the second year, and P2,500 for the third year. After three years of use the equipment is replaced, it has no salvage value. Compute the present equivalent cost of the equipment using 10% interest. (capitalized cost) 3. Determine the present worth and the accumulated amount of an annuity consisting of 6 payments of P120,000 each. The payment are made at the beginning of each year and money is worth 15% compounded annually.arrow_forward
- •1 You are planning to build a new home with approximately 2,000–2,500 gross square feet of living space on one floor. In addition, you are planning an attached two-car garage (with storage space) of approximately 450 gross square feet. Develop a cost and revenue structure for designing and constructing, operating (occupying) for 10 years, and then selling the home at the end of the 10th year. 176arrow_forwardDetermine the capitalized cost of a research laboratory which requires P5,000,000 for original construction; P100,000 at the end of every year for the first 5 years and then P147,980 each year thereafter for operating expenses, and P500,000 every 6 years for replacement of equipment with interest at 12% per annum? OA 6,441,350 O B. 6,067,015 OC.6,632,445 O D.6,573,650 O E. None of the abovearrow_forward☐ ■ Project named A. Initial invest €4000K, then in the beginning of year 2 and 3 invest €2000K separately. From the end of year 3 to year 15. yearly income €2000K, cost for production is €400K yearly. Based on the information above please draw the cash flow diagram for this project and calculate NPV. %=15% ■ Accept or refuse this project? ■ Accurate to 0.01 for the final result, such as, 4.666 ≈ 4.67 10arrow_forward
- You are managing a project which is into six months of its execution. You are now reviewing the project status and you have ascertained that project is behind schedule. The actual cost of Activity A is Rs 2,00,000 and that of Activity B is Rs 1,00,000. The planned value of these activities are Rs 1,80,000 and Rs 80,000, respectively. The Activity A is 100% complete. However, Activity B is only 75% complete. Calculate the schedule performance index and cost performance index of the project on the review date.arrow_forwarda fixed capital investment of 10000000 is required for a proposed manufacturing plant and an estimated working capital of 2,000,000.00. annual deprecision is estimated to be 10% of the fixed capital investment . Determine the rate of return on the total investment and the payout period if the annual profit is 2,500,000.00arrow_forward5. An engineer deposits Php1M today to have an annual funding for his company for the next ten years beginning one year from now. If money is worth 10%, what is the maximum annual fund that the engineer can withdraw?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Engineering Fundamentals: An Introduction to Engi...Civil EngineeringISBN:9781305084766Author:Saeed MoaveniPublisher:Cengage Learning
Engineering Fundamentals: An Introduction to Engi...
Civil Engineering
ISBN:9781305084766
Author:Saeed Moaveni
Publisher:Cengage Learning