Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 26P
a:
To determine
Calculate the amount received.
b:
To determine
Calculate the received amount through spreadsheet.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A manufacturer of electronic devices invests $650,000 in equipment for making compact piezoelectric accelerometers for general purpose vibration measurement. Estimate the rate of return from revenue of $225,000 per year for 10 years and $70,000 in salvage value from the used equipment sale in year 10. The company uses an MARR of 25%. Solve (a) Manually using interpolation, and (b) using Excel spreadsheet function.
What is the present worth difference between an investment of $30,000 per year for 40 years and aninvestment of $30,000 per year forever at an interest rate of 15% per year?
A Company purchased equipment that has two year warranty and AOC = $1500 per year, beginning in year 3 and continuing through the equipment's 10-year life. What is the approximate PW of the operating cost if the interest rate is 9%?
Chapter 4 Solutions
Basics Of Engineering Economy
Ch. 4 - State two conditions under which the do-nothing...Ch. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - The costs associated with manufacturing a...
Ch. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Two mutually exclusive projects have the estimated...Ch. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - The manager of engineering at the 900-megawatt...Ch. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Three different plans were presented to the GAO by...Ch. 4 - The U.S. Army received two proposals for a turnkey...Ch. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63APQCh. 4 - Prob. 64APQCh. 4 - Prob. 65APQCh. 4 - Prob. 66APQCh. 4 - Prob. 67APQCh. 4 - Prob. 68APQCh. 4 - Prob. 69APQCh. 4 - Prob. 70APQCh. 4 - Prob. 71APQ
Knowledge Booster
Similar questions
- A $10,000 loan amortized over 5 years at an interest rate of 10% per year requires payments of $2638 to completely remove the loan when interest is charged on the unrecovered balance of the principal. If interest is charged on the original principal instead of the unrecovered balance, what is the loan balance after 5 years, provided the same $2638 payments are made each year?arrow_forwardHarley worked for many years to save enough money to start his own residential landscape design business. The net cash flows shown are those he recorded for the first 6 years as his own boss. Find the external rate of return using the modified rate of return approach with a reinvestment rate of 15% per year and a borrowing rate of 8%. Additionally, after using the procedure, use the MIRR function to confirm your answer.arrow_forwardEach year Exxon-Mobil expends large amounts of funds for mechanical safety features throughout its worldwide operations. Carla Ramos, a lead engineer for Mexico and Central American operations, plans expenditures of $1 million now and each of the next 4 years just for the improvement of field-based pressurerelease valves. Construct the cash flow diagram to find the equivalent value of these expenditures at the end of year 4, using a cost of capital estimate for safety-related funds of 12% per year.arrow_forward
- In an effort to retain troops who are proficient with weapons and who can speak the languages of Middle Eastern countries, the Pentagon offered bonuses of $150,000 to specialized personnel who were near or already eligible for retirement. If 400 enlisted personnel accepted the bonus in year one, 300 in year two, and 600 in year three, what was the equivalent annual cost of the program over the 3-year period at an interest rate of 6% per year?arrow_forwardSince many U.S. Navy aircraft are at or near their usual retirement age of 30 years, military officials want a precise system to assess when aircraft should be taken out of service. A computational method developed at Carnegie Mellon maps in 3-D the microstructure of aircraft materials in their present state so that engineers can test them under different conditions of moisture, salt, dirt, etc. Military officials can then determine if an aircraft is fine, is in need of overhaul, or should be retired. If the 3-D system allows the Navy to use one airplane 2 years longer than it normally would have been used, thereby delaying the purchase of a $20 million aircraft for 2 years, what is the present worth of the assessment system at an interest rate of 8% per year?arrow_forwardA large water utility is planning to upgrade its system for controlling well pumps, booster pumps, and disinfection equipment, so that everything can be controlled from one site. The first phase will reduce labor and travel costs by $14,000 per year. The second phase will reduce costs by $9,000 per year. If phase I savings occur from the start up to year 3 and phase II occurs in years 4 through 10, what is the equivalent annual worth of the upgraded system in years 1 though 10 at an interest rate of 8% per year? [round to the nearest ten dollars]arrow_forward
- An investment of $60,000 ten years ago resulted in uniform income of $10,000 per year for the 10-year period. The rate of return on the investment was closest to: (a) 10.6% per year (b) 14.2% per year (c) 16.4% per year (d) 18.6% per yeararrow_forwardQ13. A small construction company has $190,000 set aside in a capital improvement fund to purchase new equipment. If $18,000 is invested at 16%, $34,000 at 21%, and the remaining $138,000 at 19% per year, what is the overall rate of return on the entire $190,000? The overall rate of return on the entire $190,000 is % per year.arrow_forwardDue to the high crime rate in the city center, the state council in partnership with the police has installed CCTV in several “hotspot” areas. The installation of the CCTV cost USD1000000. The cost of CCTV maintenance in the first year is USD500,000, USD700000 in the second year, USD950000 in the third year, USD990000 in the fourth year and costs are realized at the end of each year. On the other hand, the installation of CCTV will help to reduce crime in that area and is predicted to bring about a benefit of USD2000000 for the first and second year and a benefit of USD 3000000 for the third and fourth year. At the end of the fourth year, the CCTV will be replaced by a new one and it can be resold as second hand for USD200000. Assume the discount rate of 3% is used. Calculate the present value of net benefits assuming that the benefits are realized at the beginning of each of the three years. Also, draw the timeline of benefits and costs.arrow_forward
- Due to the high crime rate in the city center, the state council in partnership with the police has installed CCTV in several “hotspot” areas. The installation of the CCTV cost USD1000000. The cost of CCTV maintenance in the first year is USD500,000, USD700000 in the second year, USD950000 in the third year, USD990000 in the fourth year and costs are realized at the end of each year. On the other hand, the installation of CCTV will help to reduce crime in that area and is predicted to bring about a benefit of USD2000000 for the first and second year and a benefit of USD 3000000 for the third and fourth year. At the end of the fourth year, the CCTV will be replaced by a new one and it can be resold as second hand for USD200000. Assume the discount rate of 3% is used. Calculate the present value of net benefits assuming that 40% of the benefits are realized at the beginning of the year and the balance at the end of the year.arrow_forwardDue to the high crime rate in the city center, the state council in partnership with the police has installed CCTV in several “hotspot” areas. The installation of the CCTV cost USD1000000. The cost of CCTV maintenance in the first year is USD500,000, USD700000 in the second year, USD950000 in the third year, USD990000 in the fourth year and costs are realized at the end of each year. On the other hand, the installation of CCTV will help to reduce crime in that area and is predicted to bring about a benefit of USD2000000 for the first and second year and a benefit of USD 3000000 for the third and fourth year. At the end of the fourth year, the CCTV will be replaced by a new one and it can be resold as second hand for USD200000. Assume the discount rate of 3% is used. Calculate also Year 0 a). Calculate the present value of net benefits assuming the benefits are realized at the end of each of the four years. Also, draw the timeline of benefits and costs. b) Calculate the present value of…arrow_forwardDue to the high crime rate in the city center, the state council in partnership with the police has installed CCTV in several “hotspot” areas. The installation of the CCTV cost USD1000000. The cost of CCTV maintenance in the first year is USD500,000, USD700000 in the second year, USD950000 in the third year, USD990000 in the fourth year and costs are realized at the end of each year. On the other hand, the installation of CCTV will help to reduce crime in that area and is predicted to bring about a benefit of USD2000000 for the first and second year and a benefit of USD 3000000 for the third and fourth year. At the end of the fourth year, the CCTV will be replaced by a new one and it can be resold as second hand for USD200000. Assume the discount rate of 3% is used. a). Calculate the present value of net benefits assuming the benefits are realized at the end of each of the four years. Also, draw the timeline of benefits and costs.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