Engineering Economy
Engineering Economy
8th Edition
ISBN: 9780073523439
Author: Leland T Blank Professor Emeritus, Anthony Tarquin
Publisher: McGraw-Hill Education
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Chapter 1, Problem 61APQ
To determine

Calculate the interest rate.

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Chemical costs associated with a packed-bed flue gas incinerator for odor control have been decreasing uniformly for 5 years because of increases in efficiency. If the cost in year 1 was $100,000 and it decreased by $5,000 per year through year 5, the present worth of the costs at 10% per year is closest to: (a) $344, 771 (b) $402, 200 (c) $515, 400 (d) $590, 700 (e) None of the above a b C d e
A chip manufacturing company wants to have $10 million available 5 years from now in order to build new warehouse and shipping facilities. If the company can invest money at 10% per year, the amount that it must deposit each year in years 1 through 5 to accumulate the $10 million is closest to: (a) $1,638,000 (b) $2,000,000 (c) $2,638,000 (d) $2,938,000
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