Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 4P
To determine
Calculate the required revenue.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Levi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp. If U.S. Garment's operating
cost per machine is $28,000 per year for years 1 and 2 and then it increases by $1000 per year through year 5, what is the equivalent
uniform annual cost per machine (years 1-5) at an interest rate of 11% per year?
The equivalent uniform annual cost per machine is $23793
company is planning to install solar panels to provide some of the electricity to a new building for 10 years. the installation phase will cost $30000 in year 1 and $50000 in year 2. This solar installation will result in supplying electrical energy of $20000 in year 3 to year 5, $30000 in year 6, and amounts increasing by $2000 each year through year 10. comes with free maintenance. find the minimum rate of return set by the company at 10% per year.
A company wants to start a recapitalization pool for replacement of network servers. If the company invests $5000 at the end of year 1 and increases the amount invested by 5% each year, how much will be in the account 5 years from now? Interest is earned at a rate of 8% per year.
Northrop Grumman will purchase a new automated 3D printer for a component it manufactures. The printer vendor requires no payment upon delivery of the printer, but requires annual payments of $5,000 that will start three years from now (in year 3) and continue through year 6. Northrop Grumman would like to set aside today an amount of money to cover the future annual payments. How much should they set aside now if the interest rate is 10%?
Aerojet Rocketdyne is providing an annual maintenance contract to one of its customers. The contract will begin five years from now after the warranty period is over. The customer will pay $5,000 in year 5, with that amount increasing by 3% per year in years 6-10 (a…
Chapter 5 Solutions
Basics Of Engineering Economy
Ch. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - Prob. 10P
Ch. 5 - Two machines with the following cost estimates are...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Estimates have been presented to Holly Farms,...Ch. 5 - Prob. 20PCh. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - A major repair on the suspension system of Janes...Ch. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - Prob. 31PCh. 5 - Prob. 32APQCh. 5 - Prob. 33APQCh. 5 - Prob. 34APQCh. 5 - Prob. 35APQCh. 5 - Prob. 36APQCh. 5 - The AW values of three revenue alternatives are ...Ch. 5 - Prob. 38APQCh. 5 - Prob. 39APQCh. 5 - Use an interest rate of 10% per year. The...Ch. 5 - Prob. 41APQCh. 5 - Prob. 42APQ
Knowledge Booster
Similar questions
- What is the Present Worth of $2,000 costs in year one, increaing by $500 per year for years 2 through 6. The interest rate is 12% per year. Note : You must show a cash flow diagram, factor- ntation equations, and a solution)arrow_forwardA Project Manager for a construction company deposited $125,000 every 3 months into an investment fund for two years. In addition to these quarterly deposits, she withdrew $40,000 on three occasions in Months 8, 10, and 18. How much does the Project Manager expect from the fund after the two-year period if she was quoted an interest rate of 10% per year compounded semi-annually. Assume that no inter-period interest is charged.arrow_forwardLoadstar Sensors is a company that makes load/ force sensors based on capacitive sensing technology. For a major plant expansion project, the company wants to have $30 million 5 years from now. If the company already has $15 million in an investment account for the expansion, how much more must the company add to the account now so that it will have the $30 million 5 years from now? The funds earn interest at the rate of 10% per year.arrow_forward
- Pittsburgh Custom Products (PCP) purchased a new machine for ram-cambering large I beams. PCP expects to bend 90 beams at $1,800 per beam in each of the first 3 years, after which it expects to bend 100 beams per year at $3,000 per beam through year 11. If the company's minimum attractive rate of return is 14% per year, what is the present worth of the expected revenue? The present worth of the expected revenue is $arrow_forwardLifetime Savings Accounts, known as LSAs, allow people to invest after-tax money without being taxed on any of the gains. If an engineer invests $10,000 now and $10,000 each year for the next 20 years, how much will be in the account immediately after the last deposit, provided the account grows by 10% per year?arrow_forwardLevi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp. If U.S. Garment's operating cost per ma- chine is $22,000 per year for years 1 and 2 and then it increases by 8% per year through year 10, what is the equivalent uniform annual cost per machine (years 1-10) at an interest rate of 10% per year?($28,029.93)arrow_forward
- Heat loss through the walls of a heating system means an annual cost of $800,000. An insulation system that would reduce this loss by 33% could be installed for $500,000 and another that would reduce this loss by 20% could be installed for $300,000. Determine if any isolation systems should be used. Assume that the system will be used for 8 years, and that the Attractive minimum rate of return is 5% per year.arrow_forwardTacozza Electric, which manufactures brush dc servomotors, budgeted $75,000 per year to pay for certain components over the next 5 years. If the company expects to spend $15,000 in year 1, how much of a uniform (arithmetic) increase each year is the company expecting in the cost of this part? Assume the company uses an interest rate of 10% per year.arrow_forwardAssume that 25 years ago your dad invested $260,000, plus $32,000 in Year 2 through 5, and $49,000 per year from Year 6 through Year 25. The annual retirement amount he can withdraw forever starting next year (Year 26), if the interest rate is 12% per year, is nearest to: $1,320,000 $1,131,000 $2,005,500 $1,009,000arrow_forward
- We expect the cost of some equipment to rise by $1.75 every 3 months. First quarter costs will be $80, what is present worth of the cost for a 3-year time at MARR of 8% per year compounded quarterly?arrow_forwardParkhill, Smith, and Cooper, a consulting engineering firm, pays a bonus to each engineer at the end of the year based on the company’s profit for that year. If the company’s initial investment was $1.2 million, what rate of return has it made if each engineer’s bonus has been $3000 per year for the past 10 years? Assume the company has six engineers and that the bonus money represents 5% of the company’s profit.arrow_forwardHow much will Kingston Technologies have to pay each year in eight equal payments, starting 2 years from now, to repay a $900,000 loan? The interest rate is 8% per yeararrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education