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 2, Problem 22P
To determine

Calculate present value.

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A company plans to modernize its facilities in 7 years. They estimate saving $6,710 per month if they sell some of their machines now, and salvage them for $14,632. They also think 2 years from now their current $1,441 per month O & M costs will increase by 1.03% per month until they sell the rest of the machines to modernize. How much capital will they have available to modernize if they place all the savings into an account that pays them a nominal 17.37% rate, compounded 6 periods per year?
Maintenance cost of a machine is S 100 during the second year and to increase by $ 100 every year for the succeeding 5 years. What is the present value of the maintenance costs if the gradient to present equivalent conversion factor is equal to 32.18,the gradient to uniform series conversion factor is 4.59, the gradient to future equivalent conversion factor is 42.87. Show solutions
Required information Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $130,000 to provide short-haul earth- moving services. The company sold it today for $45,000, Operating and maintenance costs averaged $10,000 per year A complete overhaul at the end of year 6 costs an extra $3600. Calculate the annual cost of the truck at /- 8% per year. The annual cost of the truck is $- per year.

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Engineering Economy

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