Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 5, Problem 8P
To determine

Calculate the present worth.

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You are considering buying a company for $699, 000. If you expect the business to earn $97,000 per year, how long is the discounted payback period if your MARR is 5% ? (in years)
K Larson Manufacturing is considering purchasing a new injection-molding machine for $280,000 to expand its production capacity. It will cost an additional $15,000 to do the site preparation. With the new injection-molding machine installed, Larson Manufacturing expects to increase its revenue by $94,000 per year. The machine will be used for six years, with an expected salvage value of $77,000. At an interest rate of 8%, would the purchase of the injection-molding machine be justified? Click the icon to view the interest factors for discrete compounding when / -8% per year. The present worth of the project is $ CHID (Round to the nearest dollar)
Select the correct answer: 4) Compute the equivalent annual worth of an investment alternative that has an annuity of $2,000 for six (6) years and increase every year $200 from year two (2) to year seven (7) with an interest rate of 8%. $2,455.26 $2,369.30 $538.74 $2,538.74
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