## Solutions for Engineering Economy

Problem 17P:

Determine the amount of money FrostBank might loan a housing developer who will repay the loan 2...Problem 25P:

To attract new customers, EP Employees Credit Union advertised that they will begin paying 3%...Problem 33P:

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Early-bird: Pay total amount...# Browse All Chapters of This Textbook

Chapter 1 - Foundations Of Engineering EconomyChapter 2 - Factors: How Toime And Interest Affect MoneyChapter 3 - Combining Factors And Spreadsheet FunctionsChapter 4 - Nominal And Effective Interest RatesChapter 5 - Present Worth AnalysisChapter 6 - Annual Worth AnalysisChapter 7 - Rate Of Return Analysis: One ProjectChapter 8 - Rate Of Return Analysis: Multiple ProjectChapter 9 - Benefit/cost Analysis And Public Sector EconomicsChapter 10 - Project Financing And Noneconomic Attributes

Chapter 11 - Replacement And Retention DecisionChapter 12 - Independent Projects With Budget LimitationChapter 13 - Breakeven And Payback AnalysisChapter 14 - Effect Of InflationChapter 15 - Cost Estimation And Indirect Cost AllocationChapter 16 - Depreciaiton MethodChapter 16.A - AppendixChapter 17 - After-tax Economic AnalysisChapter 18 - Sensitivity Analysis And Staged DecisionsChapter 19 - More On Variation And Decision Making Under Risk

# Sample Solutions for this Textbook

We offer sample solutions for Engineering Economy homework problems. See examples below:

There are many alternatives that are available, and many criteria are used to select the alternative...Option (1): The interest rate (i) is 10% and time period is 7 years. The future to present compound...Option (a): Interest rate (i) is 8.4% and time period (n) is 15. The present value factor to the...Option (a): Interest rate (i) is 19% and time period (n) is 20. The future value factor to the...Option (a): Interest rate (i) is 18% and time period (n) is 33. The future value factor to the...First year operating cost (FC1) is $26,000 per year. Operation cost increases (G) by $1,500 per...First year cash flow (CF1) is $800. Cash flow decreases (G) by 100 per year per year. Interest rate...Equivalent annual value (A) is $400,000. Repayment starts from the beginning of the second year to...The cash flow is given in Table 1 as follows: Year12345678CF2,0002,200X2x2,8003,0003,2003,400 . The...

The initial cost (C) is 1,800,000 for the first 4 years. Time period 1 (n1) is 3. From year 6, the...The present value (P) is $20,000. The first withdraw (D) is $5,000 that has taken place now. The...Future value (F) is $50,000. Cash flow starts from three years and deposit five consecutive years....Table 1 shows the cash flow of two project that described the case as follows:...Table 1 shows the cash flow of two projects that described the case as follows:...Option (a): Interest rate is 1% per week. It indicates that interest rate is calculated once in a...The borrowing (B) is $80,000. The interest rate (i1) is 6% per year and it is compounded...Equivalent cash flow (CF1) from year 1 to 5 is -$100. Time period 1 (n1) is 5. Interest rate 1 (i1)...Equivalent cash flow (CF1) from year 1 to 3 is $5,000. Interest rate 1 (i1) is 10%. Time period 1 is...Time period is 15 years. Down payment (DP) is 10%. Fixed rate (i) is 5%. Price of house (Pr) is...Time period is 15 years. Down payment (DP) is 10%. Fixed rate (i) is 5%. Price of house (Pr) is...When all the available alternatives are independent, it cannot compare with the available other...Project A: Cost (C) is $80,000, salvage value (S) is $15,000, operating cost (OC) is $30,000 in year...Table -1 shows the cash flow of different projects. Table -1 Projects12First cost...Table -1 shows the cash flow of different projects. Table -1 ProjectsBCFirst cost...Table -1 shows the cash flow of different projects. Table -1 ProjectsCDFirst cost...Plan A: The initial cost (C) is $1,000,000 per year. Plan B: It is a two-year contract. The cost (C)...Table-1 shows the cash flow of different projects. Table -1 ProjectsABCFirst cost...The future value of the cash flow can be converted as equivalent annual value by multiplying the...Model G: First cost (C) is $36,000. Operating cost (A) is $4,000. Salvage value (SV) is $15,000....Table-1 shows the cash flow of different projects. Table -1 ProjectsRKSKFirst cost...Table -1 shows the cash flow of different models. Table -1 ModelsLAINCOFirst cost...Table -1 shows the cash flow of different models. Table -1 Models12Price (P)-30,000-2,000AOC (MO)...Alternative A: First cost of development (CD) is $250,000. Annual cost of development (AD) is...Option (a): The possible highest rate of return is infinitive. The reason is that a firm can earn...Investment is (I) is $650,000. Equivalent annual revenue (A) is $105,000. Salvage value (SV) is...Initial cost (C) is $130,000. Repayment in year 1 (R1) is 78,000 and increases (I) by $1,000 per...Installation cost is (IN) $4,970,000. Saving per year (A) is $1,300,000. Time period is 10. Rate of...Initial cost (C) is -$210,000. First year cost (C1) is -$150,000. Second year saving (S) is $100 and...Additional investment (C) is -$950,000. Additional revenue in the 11th year (S) is $450,000 and...Table-1 shows the cash flow. Table -1 Year Cash flow...Table -1 shows the cash flow. Table -1 YearNet cash flow (NC) (in 1,000...The minimum acceptable rate of return (MARR) is 15%. The rate of return for alternative A is 20%....Table-1 shows the cash flow. Table -1 AlternateVDFirst cost (C)-250,000-225,000Annual cost (O)per...Alternative X: First cost (F) is $84,000. Annual maintenance cost (AC) is $31,000 per year. Salvage...Table-1 shows the cash flow. Table -1 Alternative12First cost (F)-15,000-25,000AOC (AC) per...Table-1 shows the cash flow. Table -1 AlternativePQFirst cost (F)-18,000-35,000AOC (AC) per...Table-1 shows the cash flow (Values are in 1,000 units). Table -1 AlternativeTIFirst cost...Table -1 shows the cash flow. Table -1 Alternative1234Initial cost (F)--60,000-72,000-98,000Annual...The first important purpose of the public project is providing the goods and services to the public...Table-1 shows the cash flow. Table -1 ItemCash flowFirst cost (F)13,000,000Benefit (B) per...Table -1 shows the cash flow of two different project. Table -1 ItemRCInitial cost...Table-1 shows the cash flow of two different projects. Table-1 Item12Initial cost...Table-1 shows the cash flow of two different projects. Table-1 Item12Initial cost (C)60500Benefit...Model DA: Cost (C) is $200,000,000. The annual maintenance cost (AM1) is $360,000 in the first year,...Benefit (B) is $10,000 per year forever. Cost (C1) is $50,000 at year zero and (C2) $50,000 at the...The first cost (C) is $700,000 and the maintenance cost (M) is $25,000 per year. The initial...Initial cost (C) is $2,800,000. Additional cost (AC) for every 5 years is $200,000. Maintenance cost...Capital can be raised through the debt and equity. Debt is the borrowing money from the outside of...Interest expense (IP) is $1,200,000 per year. Initial received payment (RP) is $19,000,000. Face...Borrowing (B) is $800,000. Effective rate (ER) is 8%. Time period (n) is 8 years. Effective tax rate...Debt capital (D) is $2,500,000. Required return (RR) is $2,500,000. Selling is at 12th year. Returns...Plan 1: Equity financing (EF) is 100%. Cost of equity financing (CI) 8.5%. Investment is $250,000....Type 1: Debt (D) is 20%. Equity (E) is 80%. Cost of equity capital (CI) is 7.5%. Cost of debt...Defender refers to the alternate, machine, process and so on who is used in the current period....First cost (FC) is $180,000. Annual cost (AC) in year 1 and 2 is $84,000 after it increases by...Defender: Market value (MV) is $7,000. Upgrade cost (UC) is $22,000. Annual operating cost (AC) is...Defender: At the beginning of each year, payment (BP) is $180,000. Time period (n) is 5. Interest...Defender: Upgrade cost (UC) is $79,000. Market value (MV) is $40,000. Annual operating cost (AC) is...Defender: The first cost (FC) is $160,000. The annual operating cost (AC) is $7,000. The salvage...Defender: The annual cost of the defender for first year (ACD1) is $40,000, and it increases (ACDI)...The first characteristic of capital budget is that it identifies more independent alternatives with...The initial investment (IN) is $750,000. Net income (NY) is $135,000 per year. Time period (n) is...The first cost (FC) is $400,000. Annual operating cost (AC) is $75,000. Annual savings (AS) is...Table 1 shows the project cash flow: Table 1 AlternateXYZABInitial cost (FC)...Revenue per unit (RP) is $89. Variable cost (VC) is $45. Fixed cost (F) is $5,000,000. Break-even...Construction cost of gravel road (CCG) is $1,025,000. Its maintenance cost (MCG) is $355,000. Time...Initial cost of Proposal A (FCA) is $250,000. Time period (n) is 4. Annual maintenance cost (MO) is...Investment (C) is $245,000. Expense (AE) is $38,000 per year. Income (AI) is $92,000. MARR (i) is...SA: First cost (FC) is $40,000. Net annual income (NI) is $10,000. AU: First cost (FC) is $90,000....Alternate A: First cost (FC) is $300,000. Revenue (RE) is $60,000 per year. Alternate B: First cost...The inflated value of money can be converted in to constant value by dividing the inflated value by...The cash flow in Year 0 (CF0) is -$10,000 and in Year 1 (CF1) is $2,000. From Year 2 to 4 is $5000....Table-1 shows the cash flow of different alternatives. Table-1 AlternativeABFirst cost...Machine A: First cost (FC) is $150,000. Maintenance and operating cost (MO) is $70,000. Salvage...High accuracy estimates are given by the detailed estimates. Design 60–100% gives the next best...Straight line recovery rate (RRSL1) for Year 1 can be calculated as follows:...Tax depreciation is the deduction allowed in the tax calculation. This deduction reduces the tax...NOI stands for net operating income, GI stands for gross income, Te stands for effective tax rate,...The recovery rate for year 1 (RR1) is 0.3333, year 2 (RR2) is 0.4445, year 3 (RR3) is 0.1481, and...The cash flow after tax (CFAT) for defender in year 0 is equal to its market value. Thus, the cash...The value of MARR is indicated by ‘i’ and the time period is indicated by ‘n’. The value of n1 is 4....Time period is denoted by ‘n’ and after tax return is denoted by ‘i’. The remaining time period is...Investment (INV) is $850,000. Lowest range of revenue (LR) is $290,000 per year. Highest range of...Time period is indicated by (n). Interest rate is indicated by ‘i’. The annual worth (AW) of...The decision tree is given below:Time period is denoted by ‘n’ and MARR is denoted by ‘i’. The present worth (PW) for the option...Time period is denoted by ‘n’ and MARR is denoted by ‘i’. Time period 1 (n) is 40. Time period 2...The time period is denoted by ‘n’, and the MARR is denoted by ‘i’. The time period 1 (n) is 40. The...Option (a): Since it indicates the separate complete action, it is discrete. Option (b): This...

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CONNECT ACCESS FOR ENGR.ECONOMY>I<

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