EBK BASICS OF ENGINEERING ECONOMY
EBK BASICS OF ENGINEERING ECONOMY
2nd Edition
ISBN: 8220100255052
Author: Blank
Publisher: MCG
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Chapter 6, Problem 12P
To determine

Calculate the rate of return.

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Yvonne’s father was a true believer in “giving back.” He endowed a program 35 years ago to help students receive degrees when they are short on funds. If Yvonne wants to start her own scholarship fund that generates $10,000 annually starting next year, what is the amount she must contribute if earnings remain at 10% per year? The amount she must contribute if earnings remain at 10% per year is $X
Since 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?
What is the internal rate of return on a $3,000 loan to be repaid as $3,500 two years from now

Chapter 6 Solutions

EBK BASICS OF ENGINEERING ECONOMY

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