The net cash flow associated with the development and sale of a new product is shown. Determine thepresent worth at an interest rate of 12% per year. The cash fl ow is in $1000 units. Show ( a ) hand and( b ) spreadsheet solutions. Sample problems and notes are based on the following textbook:…
Civil engineering consulting firms that provide services to outlying communities are vulnerable to a number of factors that affect the financial condition of the communities, such as bond issues and realestate developments. A small consulting firm entered into a fixed-price contract with a large developer, resulting in a stable income of $260,000 per year in…
If you are able to save $5000 in year 1, $5150 in year 2, and amounts increasing by 3% each year through year 20, the amount you will have at the end of year 20 at 10% per year interest is closest to: (a) $60,810(b) $102,250(c) $351,500(d) Over $410,000 Sample problems and notes are based…
In planning for your retirement, you expect to save $5000 in year 1, $6000 in year 2 and amounts increasing by $1000 each year through year 20. If your investments earn 10% per year, the amount you will have at the end of year 20 is closest to: (a) $242,568(b) $355,407(c) $597,975(d) $659,125 Sample problems…
An investment of $75,000 in equipment that will reduce the time for machining self-locking fasteners will save $20,000 per year. At an interest rate of 10% per year, the number of years required to recover the initial investment is closest to: (a) 6 years(b) 5 years(c) 4 years(d) 3 years Sample problems and notes are…
A small construction company is considering the purchase of a used bulldozer for $61,000. If the company purchases the dozer now, the equivalent future amount in year 4 that the company is paying for the dozer at 4% per year interest is closest to: (a) $52,143(b) $65,461(c) $71,365(d ) Over $72,000 Sample problems and notes…
A manufacturing company spent $30,000 on a new conveyor belt. If the conveyor belt resulted in cost savings of $4200 per year, the length of time it would take for the company to recover its investment at 8% per year is closest to: (a) Less than 9 years(b) 9 to 10 years(c) 11 to 12…
You are told that the present worth of an increasing geometric gradient is $88,146. If the cash flow inyear 1 is $25,000 and the gradient increase is 18% per year, what is the value of n? The interest rate is 10% per year. Sample problems and notes are based on the following textbook: Engineering Economy…
If the value of Jane’s retirement portfolio increased from $170,000 to $813,000 over a 15-year period, with no deposits made to the account over that period, what annual rate of return did she make? Sample problems and notes are based on the following textbook: Engineering Economy 7th Edition ISBN-13: 978-0073376301 ISBN-10: 0073376302 Edition: 7 Author: Leland Blank, Anthony…
El Paso Water Utilities (EPWU) purchases surface water for treatment and distribution to EPWU customers from El Paso County Water Improvement District during the irrigation season. A new contract between the two entities resulted in a reduction in future price increases in the cost of water from 8% per year to 4% per year for…