EBK BASICS OF ENGINEERING ECONOMY
2nd Edition
ISBN: 8220102797123
Author: Blank
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 19P
To determine
Calculate the future worth.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
What is the effective rate corresponding to 16% compounded daily. Take 1 year is equal to 360 days.
NRG Energy plans to construct a giant solar plant in Santa Teresa, NM to supply electricity to 30,000 southern NM and western TX homes. The plant will have 390,000 heliostats to concentrate sunlight onto 32 water towers to generate steam. NRG will spend $560 million in constructing the plant and $430,000 per year in operating it. If a salvage value of 20% of the initial cost is assumed, how much will the company have to make each year for 15 years in order to recover its investment at a MARR of 18% per year?
Vision Technologies, Inc., is a small company that uses ultra-wideband technology to develop devices that can detect objects (including people) inside buildings, behind walls, or below ground. The company expects to spend $100,000 per year for labor and $125,000 per year for supplies for three years before a product can be marketed. At an interest rate of 15% per year, what is the total equivalent present worth of the company’s expenses?
Chapter 3 Solutions
EBK BASICS OF ENGINEERING ECONOMY
Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Convert an interest rate of 1.5% per month into a...Ch. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10P
Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - Prob. 31PCh. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39PCh. 3 - Prob. 40PCh. 3 - Prob. 41PCh. 3 - Prob. 42PCh. 3 - Erbitux is a colorectal cancer treatment drug that...Ch. 3 - Prob. 44PCh. 3 - Prob. 45PCh. 3 - Prob. 46PCh. 3 - Prob. 47PCh. 3 - Prob. 48PCh. 3 - Prob. 49PCh. 3 - Prob. 50PCh. 3 - Prob. 51PCh. 3 - Prob. 52PCh. 3 - Prob. 53PCh. 3 - Prob. 54PCh. 3 - Prob. 55PCh. 3 - Prob. 56PCh. 3 - Prob. 57PCh. 3 - Prob. 58PCh. 3 - The initial cost of a pulverized coal cyclone...Ch. 3 - Prob. 60PCh. 3 - Prob. 61PCh. 3 - Prob. 62PCh. 3 - Prob. 63PCh. 3 - Prob. 64PCh. 3 - Prob. 65PCh. 3 - Prob. 66PCh. 3 - Prob. 67PCh. 3 - Prob. 68APQCh. 3 - Prob. 69APQCh. 3 - Prob. 70APQCh. 3 - Prob. 71APQCh. 3 - Prob. 72APQCh. 3 - Prob. 73APQCh. 3 - Prob. 74APQCh. 3 - Prob. 75APQCh. 3 - Prob. 76APQ
Knowledge Booster
Similar questions
- A northern California consulting firm wants to start saving money for replacement of network servers. If the company invests $3,000 at the end of year 1 and increases the amount invested by 5% each year, how much will be in the account 10 years from now if it earns interest at a rate 8% per year? Part A) Using Excel, write an equation using the appropriate compound interest factor(s) that you could solve to answer the question above. Part B) Solve your equation from part A, then verify your result with a cash-flow table in Excel, like the one attachedarrow_forwardCentrum Water & Gas provides standby power to pumping stations using diesel-powered generators. An alternative is the use of natural gas to power the generators, but it will be a few years before the gas is available at remote sites. Centrum estimates that by switching to gas, it will save $15,000 per year, starting 3 years from now through the end of year 20. At an interest rate of 8% per year, determine the present worth of the projected savings.arrow_forwardMaintenance costs for pollution control equipment on a pulverized coal cyclone furnace are expected to be P 800,000 two years from now and another P 900,000 four years from now. If LPM Coal Fired Power Plant wants to set aside enough money now to cover these costs, how much must be invested at an interest rate of 12% per year compounded quarterly?arrow_forward
- If you borrow money from your friend with simple interest of 12%, find the present worth of P20, 000, which is due at the end of ten months.arrow_forwardHow much would your parents have to deposit each month into an account that grows at a rate of 12% per year, compounded semiannually, if they want to have $80,000 at the end of year 3 to cover part of your college expenses? Assume no interperiod compounding. Also, write the spreadsheet function to display the monthly amount.arrow_forwardAt 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 12,100arrow_forward
- The only time you change the original cash flow diagram in problems involving uniform series cash flows is when the: (a) payment period is longer than the compounding period (b) payment period is equal to the compounding period (c) payment period is shorter than the compounding period (d) stated interest rate is a nominal interest ratearrow_forwardThe future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $525,000. If the gradient increase each year, G, is $1000, determine the cash flow in year 1 at an interest rate of 8% per year. Cash flow in year one is ___.arrow_forwardCompare the accumulated values at the end of 10 years if P100 is invested at the rate of 12% per year compounded annually, semi-annually, quarterly, bi-monthly, monthly, and daily.arrow_forward
- Determine the exact simple interest on P5,000 for the period from Jan 15 to Nov 28, 1992 if the rate of interest is 22%. If you borrowed money from your friend with simple interest of 12%, find the present worth of P50,000 which is due at the end of 7 months. A loan company charges 15% simple interest on P500 loan. How much will be repaid if the loan is paid back in one lump sum after 3 years? The exact simple interest of P5000 invested from June 21, 1995 to December25, 1995 is P100. What is the rate of interest? What is the ordinary interest on P1500.50 for 182 days at 5.2%? Five thousand pesos invested at a certain interest rate compounded semi-annually become twenty thousand pesos after ten years. How much will it become at the end of fifteen years? How long or how many years would an amount of money invested at 10% compounded annually becomes doubled? By the conditions of a will, the sum of P20,000 is left to a girl to be held in a trust fund by her…arrow_forwardAssume that 25 years ago your dad invested $300,000, plus $34,000 in years 2 through 5, and $49,000 per year from year 6 on. Determine the annual retirement amount that he can withdraw forever starting next year (year 26), if the $49,000 annuity stopped at year 25. The interest rate being 10% per year. The annual retirement amount is determined to be $arrow_forwardA commercial real estate developer plans to borrow money to finance an upscale mall in an exclusive area of the city. The developer plans to get a loan that will be repaid with uniform payments of $575,000 beginning in year 2 and ending in year 16. How much will a bank be willing to loan at an interest rate of 13% per year? The bank will be willing to loan the developer a sum of $arrow_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:PEARSONEngineering 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 LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial 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