Engineering Economics

A payment of $70,000 will be received 12 years from now. At 6% interest compounded annually, what is it worth today?

$4,500 is deposited at the end of each year for 20 years into an account paying 7% compounded annually. How much is in the account just after the last deposit?

A machine costs $125,000, has operating costs of $8,500 a year and a salvage value of $25,000 after 5 years. At 8% interest, what is its equivalent uniform annual cost?

A product line has fixed costs of $96,000 a year, a variable cost of $9 per unit and a selling price of $25 per unit. How many units a year must be sold to break even?

Equipment costing $100,000 has a 10-year life and a salvage value of $20,000. Using straight-line depreciation, what is its book value at the end of year 4?

A loan charges a nominal 8% a year compounded quarterly. What is the effective annual interest rate?

A firm borrows $310,000 at 6% a year, to be repaid in 20 equal end-of-year payments. What is each payment?

A public project costs $800,000 now and $23,000 a year to maintain. It yields benefits of $95,000 a year for 30 years. At 6%, what is its conventional benefit-cost ratio, with maintenance counted as a cost?

A bridge costs $450,000 to build and $10,000 a year to maintain, forever. At 5% interest, what is its capitalized cost?

An investment of $87,000 returns $14,000 at the end of each year for 8 years and nothing after. What is its rate of return, to the nearest percent?

A delay will cost $6,000 with probability 0.2, $60,000 with probability 0.2, and $1,000 otherwise. What is the expected cost of the delay?

A payment of $40,000 will be received 15 years from now. At 10% interest compounded annually, what is it worth today?

$6,500 is deposited at the end of each year for 20 years into an account paying 7% compounded annually. How much is in the account just after the last deposit?

A machine costs $130,000, has operating costs of $3,000 a year and a salvage value of $26,000 after 8 years. At 6% interest, what is its equivalent uniform annual cost?

A product line has fixed costs of $462,000 a year, a variable cost of $11 per unit and a selling price of $55 per unit. How many units a year must be sold to break even?

Equipment costing $35,000 has a 10-year life and a salvage value of $7,000. Using straight-line depreciation, what is its book value at the end of year 3?

A loan charges a nominal 18% a year compounded monthly. What is the effective annual interest rate?

A firm borrows $50,000 at 7% a year, to be repaid in 5 equal end-of-year payments. What is each payment?

A public project costs $250,000 now and $15,000 a year to maintain. It yields benefits of $115,000 a year for 20 years. At 8%, what is its conventional benefit-cost ratio, with maintenance counted as a cost?

A bridge costs $450,000 to build and $60,000 a year to maintain, forever. At 4% interest, what is its capitalized cost?

An investment of $74,500 returns $14,000 at the end of each year for 8 years and nothing after. What is its rate of return, to the nearest percent?

A delay will cost $7,000 with probability 0.4, $35,000 with probability 0.1, and $1,000 otherwise. What is the expected cost of the delay?

A payment of $20,000 will be received 15 years from now. At 4% interest compounded annually, what is it worth today?

$8,500 is deposited at the end of each year for 12 years into an account paying 5% compounded annually. How much is in the account just after the last deposit?

A machine costs $70,000, has operating costs of $3,500 a year and a salvage value of $14,000 after 8 years. At 10% interest, what is its equivalent uniform annual cost?

A product line has fixed costs of $147,000 a year, a variable cost of $31 per unit and a selling price of $80 per unit. How many units a year must be sold to break even?

Equipment costing $85,000 has an 8-year life and a salvage value of $17,000. Using straight-line depreciation, what is its book value at the end of year 3?

A loan charges a nominal 9% a year compounded monthly. What is the effective annual interest rate?

A firm borrows $60,000 at 8% a year, to be repaid in 10 equal end-of-year payments. What is each payment?

A public project costs $800,000 now and $23,000 a year to maintain. It yields benefits of $135,000 a year for 20 years. At 6%, what is its conventional benefit-cost ratio, with maintenance counted as a cost?

A bridge costs $1,350,000 to build and $15,000 a year to maintain, forever. At 5% interest, what is its capitalized cost?

An investment of $101,500 returns $18,000 at the end of each year for 10 years and nothing after. What is its rate of return, to the nearest percent?

A delay will cost $15,000 with probability 0.2, $40,000 with probability 0.2, and $2,000 otherwise. What is the expected cost of the delay?