ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 7, Problem 56P
To determine

The effective annual interest rate and interest rate with the help of Present Value Interest Factor of an Annuity.

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Compute the present worth (P) for the cash flows with the different periodicinterest rates specified. The cash flows occur at the end of each year over sixyears.(a) P = $2,140(b) p = $2,154(c) P = $2,234( d) p = $2,249
A heat exchanger costs $36,000, but it will save $5000 per year in energy costs. If the interest rate is 10%, how many years does it take to recover the capital cost? Show the full solutions and given values required. Shows the Cash flow diagram if needed.
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Chapter 7 Solutions

ENGR.ECONOMIC ANALYSIS

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