Engineering Economy
8th Edition
ISBN: 9780073523439
Author: Leland T Blank Professor Emeritus, Anthony Tarquin
Publisher: McGraw-Hill Education
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Chapter 1, Problem 19P
To determine
Identify the
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Your grandmother deposited $10,000 in an investment account on the day you were born to help pay the tuition when you go to college. If the account was worth $50,000 seventeen years after she made the deposit, what was the rate of return on the account?
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Chapter 1 Solutions
Engineering Economy
Ch. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - Prob. 9PCh. 1 - Prob. 10P
Ch. 1 - Prob. 11PCh. 1 - Prob. 12PCh. 1 - Prob. 13PCh. 1 - Prob. 14PCh. 1 - Prob. 15PCh. 1 - Prob. 16PCh. 1 - Determine the amount of money FrostBank might loan...Ch. 1 - Prob. 18PCh. 1 - Prob. 19PCh. 1 - Prob. 20PCh. 1 - Prob. 21PCh. 1 - Prob. 22PCh. 1 - Prob. 23PCh. 1 - Prob. 24PCh. 1 - To attract new customers, EP Employees Credit...Ch. 1 - Prob. 26PCh. 1 - Prob. 27PCh. 1 - Prob. 28PCh. 1 - Prob. 29PCh. 1 - Prob. 30PCh. 1 - Prob. 31PCh. 1 - Prob. 32PCh. 1 - State University tuition and fees can be paid...Ch. 1 - Prob. 34PCh. 1 - Prob. 35PCh. 1 - Prob. 36PCh. 1 - Prob. 37PCh. 1 - Prob. 38PCh. 1 - Prob. 39PCh. 1 - Prob. 40PCh. 1 - Prob. 41PCh. 1 - Prob. 42PCh. 1 - Prob. 43PCh. 1 - What is the weighted average cost of capital for a...Ch. 1 - Prob. 45PCh. 1 - Prob. 46PCh. 1 - Prob. 47PCh. 1 - Prob. 48ESCh. 1 - Prob. 49ESCh. 1 - Prob. 50ESCh. 1 - Prob. 51ESCh. 1 - Prob. 52APQCh. 1 - Prob. 53APQCh. 1 - Prob. 54APQCh. 1 - Prob. 55APQCh. 1 - Prob. 56APQCh. 1 - Prob. 57APQCh. 1 - Prob. 58APQCh. 1 - Prob. 59APQCh. 1 - Prob. 60APQCh. 1 - Prob. 61APQCh. 1 - Prob. 1CSCh. 1 - Prob. 2CSCh. 1 - You developed an interest in the LCOE relation and...
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- Parkhill, Smith, and Cooper, a consulting engineering firm, pays a bonus to each engineer at the end of the year based on the company’s profit for that year. If the company’s initial investment was $1.2 million, what rate of return has it made if each engineer’s bonus has been $3000 per year for the past 10 years? Assume the company has six engineers and that the bonus money represents 5% of the company’s profit.arrow_forwardThe Aberdeen Fixed Rate Fund pays a dividend of 10% per year simple interest. If you invest $310,000 today, what total amount will you have accumulated at the end of 10 years?arrow_forwardA plaintiff in a successful lawsuit was awarded a judgment of $4800 per month for 5 years. The plaintiff has the need of a fairly large sum of money immediately for an investment of his own, and has offered the defendant the opportunity to pay off the award in a lump-sum amount of $110,000. If the defendant accepts the offer and pays the $110,000 now, what rate of return will the defendant have made by not paying the 60 monthly amounts?arrow_forward
- At what rate of return will P becomes n times as great in n years ? Tabulatevalues from n = 2 to n = 5.arrow_forwardYour grandmother deposited $10,000 inan investment account on the day you were born to help pay the tuition when you go to college. If the account was worth $50,000 seventeen years after she made the deposit, what was the rate of return on the account?arrow_forwardGive typing answer with explanation and conclusion You own a small engineering consulting company. If you invest $200,000 of the company’s money in a natural gas well that is expected to provide income of $29,000 per year, how long must the well produce at that rate in order to get the money back plus a rate of return of 10% per year? P = A[(1+i)^n -1 / i(1+i)^n]arrow_forward
- Trucking giant Yellow Corp agreed to purchase rival Roadway for $966 million in order to reduce so-called back-office costs, that is, payroll and insurance, by $45 million per year. If the savings are realized as planned, what is the rate of return on the investment?arrow_forwardSwitching to powder coating technology will reduce the emission of volatile organic carbons (VOCs) for a firm's production process. The initial cost is $200,000 with annual costs of $50,000 and revenues of $90,000 in the first year. Revenues are projected to increase by $2,000 annually after Year 1. The salvage value 10 years from now is projected to be $30,000. What rate of return will the firm make on this investment?arrow_forwardVebco Water and Gas received a contract for a seawater desalination plant wherein the company expected to make a 28% rate of return on its investment. 1. If Vebco invested $8 million the first year, what was the amount of its profit in that year? 2. What amount would have to be invested to realize the same monetary amount of return if the rate decreases to 15% per year?arrow_forward
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