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A new machine will cost $10,000. Net savings will be $1000 per year for 4 years, and then it will climb by $200 per year. What is the machine's EAW?
The estimated salvage value for the computer at end of 6 years is $6000. Find the computer's EAC if CCC uses an interest rate of 15% for economic evaluation.
If interest is 8% compounded quarterly, determine the equivalent quarterly worth and the EAW.
The annual expenses of manufacturing and selling the soap equal $73,500. Determine the EAW if the interest rate is 15%.
Joe Smith is buying a new car for $15,000. Maintenance the first year is expected to be $100. If money is worth 10%, determine the EAC for the auto.
Determine first cost of a machine that has an EAC of $4100 and annual operating costs of $2012. The machine is expected to last 6 years, and money is worth 7%.
Burke Brake Shoes may buy a new grinding machine. The machine has no salvage value after 5 years. Determine the machine's EAW at 5% interest.
What is the EAC (at 7%) of maintenance costs that start at $3500 per year and then climb by $825 per year over a 10-year life?
Picking a Price Simplified real estate analysis. Demonstrates analysis to screen before acquiring more data and further decision making.
Good example of employer taking a small fact and making big assumptions about individual talents which implies why engineering students must keep learning.
When do the higher payments catch up in total dollars received with the lower payment that starts earlier?
JoAnne, an IE working for FPL, has been tasked with evaluating the three current designs. FPL uses an interest rate of 10% and a 20-year horizon.
If the trust fund earns 8% interest, what is the builder's capitalized cost to construct the plant and future replacements, and to pay the operating costs?
How much money should be left for this purpose? Make whatever assumptions you feel are justified by the facts presented.
An elderly lady decided to distribute most of her considerable wealth to charity and to keep for herself. How much will Susan receive when her aunt dies?
How much money is required in the trust fund to provide for the laboratory and equipment and its perpetual operation and equipment replacement?
How much is the present worth of this project if it is to be demolished after 75 years? The final $500 payment in the 75th year will cover the year's operating.
If you believed 4% to be an appropriate rate of return, would you be willing to purchasethe patron membership? Explain why or why not.
A city has developed a plan to provide for future municipal water needs. Based on capitalized cost and a 7% interest rate, which alternative should be selected?
A rather wealthy man decides to arrange for his descendants to be well educated. How much money should he now set aside in the trust?
The maintenance costs begin in 30 years at $300,000 annually. How much must be deposited now if the fund will earn 5% interest?
A firm wants to sponsor a new engineering lab at a local university. What is the required endowment if the university will earn 6% interest on the funds?
Assuming 8% interest, a 20-year analysis period, and no salvage value, which is the most economical installation?
Determine the most economical plan for the initial railroad ties and their replacement for the 15-year period. Make a present worth analysis assuming 8% interes
The interest rate paid on similar corporate bonds has decreased to a current rate of 6%. Determine the market value of the bond.