EBK BASICS OF ENGINEERING ECONOMY
EBK BASICS OF ENGINEERING ECONOMY
2nd Edition
ISBN: 8220102797123
Author: Blank
Publisher: YUZU
Question
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Chapter 3, Problem 52P

a:

To determine

Calculate the annual worth.

b:

To determine

Calculate the annual worth through spreadsheet.

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The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled steel was $1.8 million for the first 4 years. An effective energy conservation program resulted in a reduced cost of $1.77 million in year 5, $1.74 million in year 6, and amounts decreasing by $30,000 each year through year 10. What is the present worth of the pumping costs in year 0 at an interest rate of 12% per year?
Bodine Electric makes gear motors with a threestage, selectively hardened gearing cluster that is permanently lubricated. If the company borrows $20 million for a new warehouse/distribution facility, what is the amount to repay the loan in six equal annual payments? The loan’s interest rate is 10% per year.
The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled steel was $1.8 million for the first 4 years. An effective energy conservation program resulted in a reduced cost of $1.77 million in year 5, and $1.74 million in year 6, and amounts decreasing by $30,000 each year through year 10. What is the present worth of the pumping costs in year 0 at an interest rate of 15% per year? Present worth of the pumping cost is ___?

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EBK BASICS OF ENGINEERING ECONOMY

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