EBK BASICS OF ENGINEERING ECONOMY
2nd Edition
ISBN: 8220102797123
Author: Blank
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 64P
To determine
Calculate the annual worth.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Western Refining purchased a model MTVS peristaltic pump for injecting antiscalant at its nanofiltration water conditioning plant. The cost of the pump was $1200. If the chemical cost is $11 per day, determine the equivalent cost per month (pump plus chemicals) at an interest rate of 1% per month. Assume 30 days per month and a 4-year pump life.
Western Refining purchased a model MTVS peristaltic pump for injecting antiscalant at its nanofiltration water conditioning plant. The cost of the pump was $1200. If the chemical cost is $11 per day, determine the equivalent cost per month at an interest rate pf 1% per month. Assume 30 days per month and a 4-year pump life.
A large water utility is planning to upgrade its SCADA system for controlling well pumps, booster pumps, and disinfection equipment for centralized monitoring and control. Phase I will reduce labor and travel costs by $28,000 per year. Phase II will reduce costs by an additional $20,000 per year, that is $48,000. If phase I savings occur in years 0, 1, 2, and 3 and phase II savings occur in years 4 through 10, what is the present worth of the upgraded system in years 1 to 10 at an interest rate of 8% per year?
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
- Pollution control equipment for a pulverized coal cyclone furnace is estimated to cost $190,000 two years from now and an additional $120,000 four years from now. If Monongahela Power wants to set aside enough money now to cover these future costs, how much must be invested at an interest rate of 8% per year, compounded semiannuallyarrow_forwardPetroleum Products, Inc. is a pipeline company that provides petroleum products to wholesalers in the Northern United States and Canada. The company is considering purchasing insertion turbine flowmeters to provide better monitoring of pipeline integrity. If these meters prevent one major disruption (through early detection of product loss) valued at $600,000 four years from now, how much could the company afford to spend now at an interest rate of 12% per year?arrow_forwardBodine Electric, based in Des Moines, Iowa, USA, makes gear motors with a three-stage, selectivelyhardened gearing cluster that is permanently lubricated. If the company borrows $20 million for a new distribution facility in Europe, how much must it pay back each year to repay the loan in six equal annual payments at an interest rate of 10% per year?arrow_forward
- Meggitt Systems, a company that specializes in extreme-high-temperature accelerometers, is investigating whether it should update certain equipment now or wait and do it later. If the cost now is $280,000, what is the equivalent amount 2 years from now at an interest rate of 12% per year?arrow_forwardFor the cash flows below, determine the amount in year 1, if the annual worth in years 1 through 9 is 601.17 pesos and the interest rate is 12% per yeararrow_forwardengineering economics COURSE QUESTION: Freeport McMoran purchased two model MTVS peristaltic pumps (to inject sulfuric acid and King Lee antiscalant) for use at its nanofiltration water conditioning plant. The cost of the pumps was $950 each. If the chemical cost is $11 per day, determine the equivalent cost per month at an interest rate of 12% per year, compounded monthly. Assume 30 days per month and a 3-year pump life.arrow_forward
- 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.arrow_forwardRadio Frequency Identification (RFID) is a technology used by drivers with “speed passes” at toll booths and ranchers who track livestock from “farm to fork.” Thrift-Mart is implementing the technology to track products within its stores. The RFID-tagged products will result in better inventory control and save the company $1.3 million per month beginning 3 months from now. How much can the company afford to spend now to implement the technology at an interest rate of 12% per year, compounded monthly, if it wants to recover its investment in 2½ years? Also, write a spreadsheet function to display the answerarrow_forwardAttenuated Total Reflectance (ATR) is a method for looking at the surfaces of materials that are too opaque or too thick for standard transmission methods. A manufacturer of precision plastic parts estimates that ATR spectroscopy can save the company $8000 per year by reducing returns of out-of-spec parts. What is the future worth of the savings if they start now and extend through year 4? Use i = 10% per year.arrow_forward
- A small oil company wants to replace its Micro Motion Coriolis flowmeters with Emerson FSeries flowmeters in Hastelloy construction. The replacement process will cost the company $50,000 three years from now. How much money must the company set aside each year beginning one year from now in order to have the total amount in three years? Assume the company will invest its funds at 20% per year.arrow_forwardFor the cash flow revenues shown below, find the value of G that makes the equivalent annual worth in years 1 through 7 equal to $500. The interest rate is 9% per year.arrow_forwardAn entrepreneurial electrical engineer approached a large water utility with a proposal that promises to reduce the utility’s power bill by at least 15% through installation of patented surge protectors. The proposal states that the engineer will not be paid for the first year, but beginning in year 2, she will receive three equal, annual payments that are equivalent to 60% of the power bill savings achieved in year 1 due to the protectors. Assuming that the utility’s power bill of $1 million per year is reduced by 15% after installation of the surge protectors, what is (a) the present worth in year 0 of the uniform payments to the engineer, and (b) their future worth in year 4? Use an interest rate of 10% per year.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