GENG 360: Engineering Economy
Question # 00631893
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Updated on: 12/27/2017 01:46 PM Due on: 12/27/2017
GENG 360: Engineering Economy
1. The U.S. Border Patrol is considering the purchase of a new helicopter for aerial surveillance of the New Mexicoâ€“Texas border with Mexico. A similar helicopter was purchased 4 years ago at a cost of$140,000. At an interest rate of 7% per year, what would be the equivalent value today of that $140,000 expenditure?
2. The current cost of liability insurance for a certain consulting firm is $65,000. If the insurance cost is expected to increase by 4% each year, what will be the cost 5 years from now?
3. Find the numerical value of the following factors by
i. (P/F,18%,33)
1. The U.S. Border Patrol is considering the purchase of a new helicopter for aerial surveillance of the New Mexicoâ€“Texas border with Mexico. A similar helicopter was purchased 4 years ago at a cost of$140,000. At an interest rate of 7% per year, what would be the equivalent value today of that $140,000 expenditure?
2. The current cost of liability insurance for a certain consulting firm is $65,000. If the insurance cost is expected to increase by 4% each year, what will be the cost 5 years from now?
3. Find the numerical value of the following factors by
(a) interpolation and
(b) using the appropriate formula.
i. (P/F,18%,33)
ii. (A/G,12%,54)
4. A cash flow sequence starts in year 1 at $3000 and decreases by $200 each year through year 10. (a) determine the value of the gradient G; (b) determine the amount of cash flow in year 8; and (c) determine the value of n for the gradient.
5. San Antonio is considering various options for providing water in its 50year plan, including desalting. One brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 4 years, after which less production will decrease revenue each year by $50,000 per year. If the aquifer will be totally depleted in 25 years, what is the present worth of the desalting option at an interest rate of 6% per year?
4. A cash flow sequence starts in year 1 at $3000 and decreases by $200 each year through year 10. (a) determine the value of the gradient G; (b) determine the amount of cash flow in year 8; and (c) determine the value of n for the gradient.
5. San Antonio is considering various options for providing water in its 50year plan, including desalting. One brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 4 years, after which less production will decrease revenue each year by $50,000 per year. If the aquifer will be totally depleted in 25 years, what is the present worth of the desalting option at an interest rate of 6% per year?

Rating:
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Solution: GENG 360: Engineering Economy