Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 1, Problem 48P
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Instructions Sun Oil Company is considering the installation of new flow meters in one of its pipelines. If the company goes ahead with the project, it will spend $50,000 each year for four years starting 2 years from now. What is the present of the investment at an interest rate of 10% per year? Show the cash flow diagram.
You found a report stating that the equivalent annual worth of chemical costs associated with a water treatment process were $125,000 per year for a 5-year period. The report stated that the cost in year 1 was $190,000 and the cost decreased by a uniform amount each year over that 5-year period. However, it did not say how much the decrease was each year. If the interest rate was 20% per year, the amount of the annual decrease, G, is closest to: (a) $27,358 (b) $31,136 (c) $33,093 (d) $39,622
Southwestern Moving and Storage wants to have enough money to purchase a new tractor-trailer in 3 years. If the unit will cost $250,000, how much should the company set aside each year provided the account earns 9% per year?

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Basics Of Engineering Economy

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