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 1, Problem 60P
To determine
Cash flow diagram.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Construct the cash flow diagram to find the present worth in year 0 at an interest rate of 15%
per year for the following project:
Year
0
Cash Flow ($) 19,000
1
+8,100
2
+8,100
Answer
3
+8,100
4
+8,100
What is the Present Worth of $2,000 costs in year one, increaing by $500 per year for years 2 through 6.
The interest rate is 12% per year.
Note : You must show a cash flow diagram, factor- ntation equations, and a solution)
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.
Chapter 1 Solutions
Basics Of Engineering Economy
Ch. 1 - Prob. 1PCh. 1 - Which of the following would be considered...Ch. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - Prob. 9PCh. 1 - What is meant by the term time value of money?
Ch. 1 - Prob. 11PCh. 1 - Of the fundamental dimensions length, mass, time,...Ch. 1 - Prob. 13PCh. 1 - When an interest rate statement does not include a...Ch. 1 - Prob. 15PCh. 1 - Prob. 16PCh. 1 - Prob. 17PCh. 1 - Prob. 18PCh. 1 - Prob. 19PCh. 1 - Prob. 20PCh. 1 - Prob. 21PCh. 1 - Prob. 22PCh. 1 - Prob. 23PCh. 1 - Prob. 24PCh. 1 - Prob. 25PCh. 1 - Prob. 26PCh. 1 - Prob. 27PCh. 1 - Prob. 28PCh. 1 - How many years does it take for an investment of...Ch. 1 - Prob. 30PCh. 1 - Prob. 31PCh. 1 - Prob. 32PCh. 1 - Prob. 33PCh. 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 - Prob. 44PCh. 1 - At 9% per year simple interest, 1000 is equivalent...Ch. 1 - Prob. 46PCh. 1 - Prob. 47PCh. 1 - Prob. 48PCh. 1 - Prob. 49PCh. 1 - Prob. 50PCh. 1 - Prob. 51PCh. 1 - Prob. 52PCh. 1 - Prob. 53PCh. 1 - Prob. 54PCh. 1 - Prob. 55PCh. 1 - Prob. 56PCh. 1 - Prob. 57PCh. 1 - Prob. 58PCh. 1 - Prob. 59PCh. 1 - Prob. 60PCh. 1 - Prob. 61PCh. 1 - Prob. 62PCh. 1 - Prob. 63PCh. 1 - Prob. 64PCh. 1 - Prob. 65PCh. 1 - Prob. 66PCh. 1 - Prob. 67PCh. 1 - Prob. 69APQCh. 1 - Prob. 70APQCh. 1 - Prob. 71APQCh. 1 - Prob. 72APQCh. 1 - An investment of 8,000 nine years ago has...Ch. 1 - Prob. 74APQCh. 1 - Prob. 75APQCh. 1 - Prob. 76APQCh. 1 - Prob. 77APQ
Knowledge Booster
Similar questions
- You are a well-paid engineer with a well-established international corporation. In planning for your retirement, you are optimistic and expect to make an investment of 10,000 in year 1 and increase this amount by 10% each year. How long will it take for your account to have a future worth of 2,000,000 at a rate of return of 7% per year? RKE & Associates is considering the purchase of a building it currently leases for 30,000 per year. The owner of the building put it up for sale at a price of 170,000, but because the firm has been a good tenant, the owner offered to sell it to RKE for a cash price of 160,000 now. If purchased now, how long will it be before the company recovers its investments at an interest rate of 15% per year? A start-up company that makes robotic hardware for CIM (computer integrated manufacturing) systems borrowed 1 million to expand its packaging and shipping facility. The contract required the company to repay the lender through an innovative mechanism…arrow_forwardam 1 5 20124-48 Saved Turik Electronics manufactures microprocessor-based soft starters that use thyristors for controlled reduced voltage during starting and stopping. The company is planning a production-line expansion that will cost $1.8 million. If the company uses a minimum attractive rate of return of 15% per year, what is the equivalent annual cost in years 1 through 5 of the investment? (Enter your answer in dollars and not in millions of dollars.) The equivalent annual cost is $arrow_forwardSMS Inc. wants to have enough money to purchase a new tractor-trailer in 5 years. If the unit will cost $500,000, how much should the company set aside each year (starting at the end of year 1 and each year until year 5) if the account earns a compound interest of 12% per year? (All the alternatives presented below were calculated using compound interest factor tables including all decimal places) $283,700 $138,705 $78,705 $61,615arrow_forward
- 2. If a Plastics company purchases a new building now for $1.3 million for its corporate headquarters, what must the building be worth in 10 years? The company expects all expenditures to earn a rate of return at least 18% per year.arrow_forwardQuestion 5 Costs for maintenance of buildings at an industrial complex are expected to be $1,000 in year three, $1,200 in year four and amounts increasing by $200 per year thereafter through year nine. At an interest rate of 10% per year, what is the present worth of the cash flow? Question 6 You wish to make an investment of $3,000 today, which will become $5,000 at an interest rate if 12% . How many years will it take? Please don't handwriting solutionarrow_forwardA 20-year-old student decided to set aside $100 on his 21st birthday for investment. Each subsequent year through his 55th birthday, he plans to increase the investment on a $100 arithmetic gradient. He will not set aside additional money after his 55th birthday. If the student can achieve an 8% rate of return, what is the future worth of the investments on his 65th birthday?arrow_forward
- For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. Calculate the present worth of a geometric gradient series with a cash flow of $40,000 in year 1 and increases of 6% each year through year 10. The interest rate is 10% per year.arrow_forwardA company wants to start a recapitalization pool for replacement of network servers. If the company invests $5000 at the end of year 1 and increases the amount invested by 5% each year, how much will be in the account 5 years from now? Interest is earned at a rate of 8% per year. Northrop Grumman will purchase a new automated 3D printer for a component it manufactures. The printer vendor requires no payment upon delivery of the printer, but requires annual payments of $5,000 that will start three years from now (in year 3) and continue through year 6. Northrop Grumman would like to set aside today an amount of money to cover the future annual payments. How much should they set aside now if the interest rate is 10%? Aerojet Rocketdyne is providing an annual maintenance contract to one of its customers. The contract will begin five years from now after the warranty period is over. The customer will pay $5,000 in year 5, with that amount increasing by 3% per year in years 6-10 (a…arrow_forwardIt cost P66,327 at the end of each year to maintain a section of Kennon road in Baguio City. If money is worth 12.41%, how much would it pay to spend immediately to reduce the annual cost to P13,655?arrow_forward
- Health informatics is making use of monitoring devices, microelectronic mechanical systems, and wireless integrated microsystems (WIMS). Monitoring of patients, alerting health professionals when a patient needs attention, and even automatically releasing drugs as needed, are becoming possible through engineering. If the cost savings in a local healthcare center is estimated to be $20,000,000 during the 7th year from now, what investment today would be justified for just that one year's savings if the time value of money is 12% per year?arrow_forwardA commercial real estate developer plans to borrow money to finance an upscale mall in an exclusive area of the city. The developer plans to get a loan that will be repaid with uniform payments of $425,000 beginning in year 2 and ending in year 16. How much will a bank be willing to loan at an interest rate of 6% per year? The bank will be willing to loan the developer a sum of $|arrow_forwardUsing the uniform gradient amount (G) and the following series of cash flow, calculate the future equivalent at the end of 2012 with the interest rate of 8% per year? 2009 $1,000 2010 $800 a) $3,500 b) $2,000 c) $1,500 d) $400 Years $600 2011 $400 2012arrow_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:PEARSON
Engineering 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 Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial 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