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- Calculate the future worth (FW) at 10% of a project that will save $25K per year for 20 years. The first cost is $120K, and the salvage value is $20K. Compare this with the PW and the EAW. (Please show the process and solution ty.)Awnser promblem cA firm will install one of two mechanical devices to reduce costs. Both devices have useful lives of 5 years and no salvage value. Device A costs $10,000 and can be expected to result in $3000 savings annually. Device B costs $13,500 and will provide cost savings of $3000 the first year, but savings will increase $500 annually, making the second-year savings $3500, the third-year savings $4000, and so forth. With interest at 7%, which device should the firm purchase?
- 6.53 George buys a car every 6 years for $18,000. He trades in his current car to count as the 20% down payment. The rest is financed at a nominal 12% in- terest with monthly payments over 6 years. When the loan is paid off, he trades in the car as the "20%" down payment on the next car, which he finances the same way. Jeanette has similar tastes in cars, and the dealer will count her trade-in vehicle as worth 20%. She has paid cash for old cars in the past, so she now has $14,400 in cash for the other 80% cost of a new car. In 6 years, her vehicle will be worth the "20%" down payment. She wants to make a monthly deposit so that she has the other 80% of the vehicle's cost in 6 years. Her savings account has a nominal annual interest rate of 6% with monthly compounding. What is George's payment? What is Jeanette's deposit? If Jeanette also deposits the difference in a retirement account that pays 9% nominal interest with monthly compounding, what does she have for retirement after 40…DRAW ALL CASH FLOW DIAGRAMS 1. Barbara wants to triple the money currently in her account that earns 3.5% per year interest. How long does she need to wait? 2. Joe deposits S8,000 right now and another $3,000 5 years from now. How much money will be in the account 12 years from now? Rate is 4% per year 3. Joe (the same one above) deposits $8,000 now and withdraws $3,000 5 years from now. How much money will be in the account 12 years from now? 4. Jane deposits $2,500 into an account that carns 4.5% per year. 3 years later, the interest rate goes up to 6.5% How much money she will have 8 years after the initial investment? 5. Tim starts his freshman year and would like to take a trip to Europe upon graduation that will cost $5,600. How much he should be saving every year, including his senior year to be able to afford this trip. His bank account earns 4.5% per year interest.Referring to the following cumulative cash flow diagram, salvage value is most nearly 3M 10 ERY -IM $500000 $1M $750000 - s'NOILIGOd HSV)
- A certain property is being sold and the owner receives two bids. The first bidder offered to pay P400000 each year for 5 years and the payment is to be made at the beginning of each year. The second bidder offered to pay P240000 fest ysar, P350000 the second year, and P540000 each year for the next 3 years, all payments to be made at the beginning of each ysar, If money is worth 20% compounded annually, which bid should the owner of the property accept?Your boss wants to buy an equipment for 30,000php. It is believed that this equipment will bring an additional 8,500 php income per year. The equipment's value after 5 years will be 4, 500 php. Your boss asks you at what value should the MARR be to break even between profit or loss. What would be your answer? Solve using present worth, annual worth and future worth. Tabulate your answers and show cash flow diagram.Engineering Economics19 Please show a step by step solution using Present worth method thanks please
- Please no written by hand solutions Q3. An individual makes five annual deposit of $2000 in a savings account that pays interest at a rate of 4% per year. One year after making the last deposit, the interest rate changes to 6% per year. Five years after the last deposit the accumulated money is withdrawn from the account. How much is withdrawn?Complete the following analysis of cost alternatives and select the preferred alternative. The study period is 10 years and the MARR = 10% per year. "Do Nothing" is not an option. A B $15,000 $16,100 240 290 1,000 1,250 -$41,731 - $45,131 Capital investment Annual costs Market value at EOY 10 FW (10%) Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. The FW of the alternative C is $. (Round to the nearest dollar.) Select the preferred alternative. Choose the correct answer below. OA. Alternative C OB. Alternative A OC. Alternative B O D. Alternative D D $17,900 110 1,950 ??? - $46,231 с $12,500 450 1,800Suppose you are offered two options: (i) receive Taka 30,000 at the end of 5 years or (ii) receive Taka P today and another Taka P 2 year later. When you invest the P Taka in ecommerce it pays around 8% profit yearly. What value of P would be same as promise of Taka 30,000 after 5 years? Assume there is no risk in this future payment.