A manufacturing company has requested that $500,000 be spent on software and hardware toimprove the efficiency of environmental control systems for the manufacturing process. This isexpected to save $10,000 per year for 10 years in energy costs and $700,000 at the end of 10years in equipment refurbishment costs.1) Calculate the present worth at i= 5%?2) Calculate the present worth at i= 6%?3) Find the rate of return?

Step 1:1)we have to calculate the present worth. It means we have to calculate the net present value…

Answered: A manufacturing company has requested…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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When you take your ﬁrst job, you decide to start saving right away for yourretirement. You put $ 5,000 per year into the company’s 401(k) plan, whichaverages 8% interest per year. Five years later, you move to another job andstart a new 401(k) plan. You never get around to merging the funds in the twoplans. If the ﬁrst plan continued to earn interest at the rate of 8% per year for 35 years after you stopped making contributions, how much is the account worth?
Q) A civil engineer planning for her retirement places 11% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $200,000 and she expects her salary to increase by 4% each year, what will be th future worth of her retirement fund after 14 years provided it earns 8% per year? Solve it correctly. Typed or handwriting with concept use. Not solve in excel works.
Sonia’s house is worth $350,000. Homes have been appreciating at 5.7% per year for several years. If this trend continues, what will Sonia’s house be worth 15 years from now?
It is estimated that a copper mine will produce 10,000 tons of ore during the coming year. Production is expected to increase by 5% per year thereafter in each of the following six years. Profit per ton will be $14 for years one to seven. a. Draw a cash flow diagram for this copper mine operation from the company's viewpoint. b. If the company can earn 10% per year on its capital, what is the equivalent of the coppermines cashflow in year seven?
At a simple interest rate of 13% per year, determine how long will it take $7,500 to increase to 4 times as much. Compare the time it will take to double if the rate is 20% per year simple interest At an interest rate of 13%, it will take __ years for the amount to increase 4 times as much. It will take __ years for the amount to double at an interest rate of 20%.
The Pedernales Electric Cooperative estimates that the present worth now of income from an investment in renewable energy sources is $21,000,000. There will be no income in years 1 and 2, but in year 3 income will be $425,000, and thereafter it will increase according to an arithmetic gradient through year 15. What is the required gradient if the interest rate is 15% per year? Solve using factors. What is the required gradient? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
Example 1.4: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 S2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of 42 $3000 per year for the following 3 years. How would the cash flow diagram appearif i 8.5% per year?, Assume the F equal $13,000 find the P(Present worth)
Suppose that the installation of Low-Loss thermal windows is expected to save $450 per year on your home heating bill. If you expect to occupy your home for 40 years and could earn 6% per year on other investments, how much can you for the pay now to have the new windows installed?
Compute the future value of $536 invested every year if the appropriate rate is 11.2% and you invest the money for 4 years with the first payment made one year from now.
Peter has decided to make a deposit of $500 each quarter (starting next quarter) for 5 years. If the interest rate is 16%/year compounded monthly, the closest equivalent future value right after his last deposit is Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
In Year 2532, the world is “Exactly” different. Every second, minute, hour counts in comes to interest. Compute the future amount of an investment P 100,000 with an interest of 15% after 74 days, 2 hours, 6 minutes and 20 seconds
Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual withdrawals of $2000 can be made before depleting the funds. If the first withdrawal is made in year 1 after the deposit and if the bank provides an interest rate of 5% per year, how much money should be deposited now? What if Troy decides to withdraw all that he has deposited in the bank now, 5 years later, how much money should he expect to get with an interest rate of 5%? I 2.

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