Problem 07.008 - IRR spreadsheet calculation from equation Use factors and a spreadsheet to determine the interest rate per period from the following equation: 0=-26,000+8,000 (P/A,1,5) +8,000 (P/F,i*,8) The interest rate per period is 21 0%
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- What are the values of the engineering economy symbols P, F, A, i, and n in the following spreadsheet or TVM calculator functions? Use a “?” for the symbol that is to be determined.a. FV(8%,10,2000,-10000)b. PMT(12%,30,16000)c. PV(9%,15,1000,700)d. n(8.5,5000,-50000,20000)Army Research Laboratory scientists developed a diffusion-enhanced adhesion process which is expected to significantly improve the performance of multifunction hybrid composites. NASA engineers estimate that composites made using the new process will result in savings in space exploration projects. The cash flows for one project are estimated. Determine the rate of return per year. Year, t Cost ($1000) Savings ($1000) 0 −210 — 1 −150 — 2–5 — 100 + 60(t − 2)State the purpose for each of the following built-in spreadsheet functions:a. FV(i%,n,A,P)b. IRR(first_cell:last_cell)c. PMT(i%,n,P,F)d. PV(i%,n,A,F)
- Identify the engineering economy symbols and their values. Use a question mark with the symbol whose value is to be determined. Fifteen years ago your grandfather invested $18,000 in a stock fund to pay for your college education. Each year thereafter, he deposited $2,600 into the fund. If the investments grew at a rate of 8% per year over the 15 years, how much is in the fund now? $18,000 = (Click to select) n A i F P $2,600 = (Click to select) F i A n P 0.08 = (Click to select) P n i A F 15 = (Click to select) n P i A F ? = (Click to select) P n i A FMr. Smith has saved RM1 800 each year for 20 years in Unit trust account. A year after the saving period ended, Mr. Smith withdrew RM7 500 each year for a period of 5 years. In the sixth and seventh years, he only withdrew RM5 000 per year. In the eighth year, he decided to withdraw the remaining money in his account. The interest rate was 6% per year throughout the whole period. Q1 (a) Draw the cash flow diagram SK 5K 7.5K 7.5K 7 SK 7.5K 7.5K 4 6 26 27 20 21 22 23 24 25 28 1.8K 1.8K iSK (b) Determine the remaining amount of money that he can withdraw at the end of the eighth year 1800 E, 6%, 20) (,6%,8) = 7500 (.6%, 5) (F. 6%.,3) + 5x (.6%, 2) + 5K (E, 6%, 1) + XYou decide to repay a small loan of P1,000,500.00. What would be the size of the amount to be repaid if the amount of years that you need to pay is 20 years and you decide to pay annually? The interest rate is 2% per year. Show olution and cashflow
- Engineering Economics 00013 Please provide a step by step solution using Rate of Return (ROR) ThankyouChoose the formula that you will use for the following case: A major repair on the suspension system of a 5-year-old car cost $2000. The cost of periodic maintenance has been $800 every 2 years. If the owner donates the car to charity after 8 years of ownership, what is the quivalent annual cost of the repair and maintenance in the 8-year period of ownership? Use an interest rate of 8% per year, and assume that the owner paid the $800 maintenance cost immediately before donating the car in year 8. AW = -2000 (A/P, 8%, 8) - 800 (A/P, 8%, 2) - 800 (A/P,8%, 4) - 800 (A/P, 8%, 6) - 800 (A/P,8%, 8) PW = -2000 (P/A, 8%, 8) - 800 (P/A, 8%, 2) - 800 (PIA, 8%, 4) - 800 (P/A, 8%, 6) - 800 (P/A, 8%, 8) PW = -2000 (P/F, 8%, 8) - 800 (P/F, 8%, 2) - 800 (P/F, 8%, 4) - 800 (P/F, 8%, 6) - 800 (P/F, 8%, 8) AW = -2000 (A/F, 8%, 8) - 800 (A/F, 8%, 2) - 800 (A/F,8%, 4) - 800 (A/F, 8%, 6) - 800 (A/F,8%, 8)A fresh graduate engineer decides to start a consulting firm by borrowing $130,000 at interest rate of 13% per year interest, using the formula: a) What is the loan payment each year to pay off the loan in 7 years?, b) Using the above calculation, draw the cash flow diagram 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.
- The manager of a production system expects to spend $100,000 the first year with amounts decreasing by $10,000 each year. Income is expected to be $400,000 the first year, decreasing by $50,000 each year. a) Draw cash flow diagrams of expenditures and income separately over a 6 year period at an interest rate of 10% per year. b) Determine the present worth of the company's net cash flow (present worth = present income present expenditure). Please write formula and show your solution step by step. Use compound interest tables.Q) The maintenance costs associated with a machine are $2000 per year for the first ten years and $1000 per year thereafter. The machine has an infinite life. If interest is 10% per year, what is the present worth of the annual disbursements? Explain it early but not solve in excel. Typed or handwriting only use.(engineering economic) What is the value of F equivalent to the cash flows in the diagram if i = 12%