The maintenance cost for furnaces at a copper smelting plant have been constant at $140,000 per year for the past 5 years. If the interest rate was 8% per year for the first 3 years and then it increased to 10% in years 4 and 5, what is the equivalent future worth (in year 5) of the maintenance cost? Show hand and spreadsheet solutions.

The maintenance cost for furnaces at a copper smelting plant have been constant at $140,000 per year for the past 5 years. If the interest rate was 8% per year for the first 3 years and then it increased to 10% in years 4 and 5, what is the equivalent future worth (in year 5) of the maintenance cost? Show hand and spreadsheet solutions.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

How much money was deposited each year for 8 years if it now amounts to $204,000 and the last deposit was made 10 years ago? Assume the account earned interest at 7% per year. The money deposited each year is $
How much equal amounts of money was deposited each year for 8 years if the account is now worth $20000 and the last deposit was made 10 years ago? Assume the account earned interest at 12% per year.
A wind turbine engineering firm has both the experience and an undeveloped plan for a new and more efficient design. A manufacturer has offered to pay the firm $2,000,000 for a working prototype, with complete documentation, 3 years from today. The turbine design firm wants to earn 22% per year on its money. How much can the turbine design firm afford to invest, expressed as if its entire investment were to take place today?
Durban Moving and Storage wants to have enough money available 5 years from now to purchase a new tractor-trailer. If the estimated cost is $250,000, how much should the company set aside each year if the funds earn 9% per year?
A company purchased new equipment for $250,000 now and annual operations and maintenance costs of $24,000 per year for 5 years starting 3 years from now. What is the present worth of these costs if the interest rate is 8% per year?
How much will Kingston Technologies have to pay each year in 8 equal payments, starting 2 years from now, to repay a $900,000 loan. The interest rate is 8% per year? Kingston Technologies will have to pay $ loan. each year to repay the
Because of a chronic water shortage in California, new athletic fields must use artificial turf or xeriscape landscaping. If the value of the water saved each six-months is $5,500, how much can a private developer afford to spend now on artificial turf provided he must recover his investment in 5 years. Use an interest rate of 15% per year, compounded continuously? The private developer can afford to spend $
How long does it take to triple an investment (to become 3 times) if the investment pays simple interest rate of 22 9% per year.
A customer deposits his money in a bank for 10 million dollars for 2 years. If the deposit interest rate offered by the bank is 8% per year, and the interest calculation system uses a compound interest system that is paid every 3 months. Calculate the value of the customer's deposit at the end of the second year!
Revenue from gas wells that have been in production for at least 5 years tends to follow adecreasing geometric gradient. One particular rights holder received royalties of $4000per year for years 1 through 6, but beginning in year 7, income decreased by 15% peryear through year 14. What was the future value (year 14) of the income from the well, ifall of the income was invested at 10% per year?
An Industrial Engineer made a modification to a chip manufacturing process that will save the company $10,000 per year. At an interest rate of 8% per year, how much will the savings amount to in 7 years?
An engineer wishes to purchase an $75000 lakeside lot (real estate) by making a down payment of $20000 and borrowing the remaining from the bank which he will repay on a monthly basis over the next 30 years. If the bank charges interest at the rate of 9%% per year, compounded monthly how much money must the engineer repay each month?