Q 9 please 8. In the cash-flow diagram shown in the given figure:A) 7.50% compounded semi-annuallyC) 7.50% compounded dailyA= $4500B) $37,205F-?7-10%A) $620.9B) $6209 nollaoup C) $6290 odtul 21D) None of the mentioned.9. Which of the following statements is (are) correct:10ps Anado si noon Inaltatz stefan.(A) The change in the amount of money over a given time period is called 'time value' of money, a mostimportant concept in engineering economyGE172(8(B) The manifestation of the time value of money is termed as interest,oval obanal.(C) Interest on borrowing = present amount owed - original loan(D) All of the mentioned.10. How much must a person put into the bank today if he wants $50,000 in 5 years at 6% TEcompounded annually:A) $37,365B) $37,205C) $37,890D) $36,36511.11. A machine has a first cost of $150,000. Its service life is 10 years when it can be sold for $30,000.Annual maintenance costs are $2,500. At years 4 and 8, it will require major servicing at a cost of$20,000 each. What is the equivalent annual cost of owning and operating this machine, assumingthat the rate is 10%?A) 27.000B) 25.900C) 28.680D) 25.57012. Find the compound interest on $1000 for 10 years at 4% per annum if the interest is calculatedquarterlyA) 398B) 48613. Which of the following is depleted recourse?A) Coal MinesB) LandC) MachineryD) all of the mentioned14. Ali is about to renew the mortgage on his home and understands that it is much cheaper tomake his mortgage payments as frequently as possible. He is considering four possible interest rateoffers. Which would be the most beneficial offer to a borrower like Ali?C) 47867 YearB) 7.50% compounded annuallyD) 7.50% compounded monthly15. How much must a person put into the bank today if he wants $50,000 in 5 years at 6%compounded semi-annually.A) $35,205C) $37,365D) 504D) $37,720

The time value of money refers to the concept that tells that a sum of money is value more today…

9. Which of the following statements is (are) correct: jam hab. (A) The change in the amount of money over a given time period is called 'time value' of money, a most important concept in engineering economy 172(8 (B) The manifestation of the time value of money is termed as interest (C) Interest on borrowing = present amount owed - original loan (D) All of the mentioned.

9. Which of the following statements is (are) correct: jam hab. (A) The change in the amount of money over a given time period is called 'time value' of money, a most important concept in engineering economy 172(8 (B) The manifestation of the time value of money is termed as interest (C) Interest on borrowing = present amount owed - original loan (D) All of the mentioned.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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