EBK BASICS OF ENGINEERING ECONOMY
EBK BASICS OF ENGINEERING ECONOMY
2nd Edition
ISBN: 8220102797123
Author: Blank
Publisher: YUZU
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Chapter 3, Problem 50P
To determine

Calculate the annual worth.

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Maintenance 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?
Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be $25,000 in year 1 and increase by 2% each year through year 5. What is the equivalent annual worth of the maintenance costs at an interest rate of 10% per year, compounded quarterly?
In order to find the future worth, F, from a present amount, P, 5 years from now at an interest rate of 12% per year, compounded quarterly, what interest rate must be used in the F∕P factor, (F∕P,i%,n), when n is (a) 5, (b) 10, and (c) 20?

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EBK BASICS OF ENGINEERING ECONOMY

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