Engineering Economy – Problem 2.69

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…

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…