3. (5 Marks) An engineering project requires $25,000 as first cost and has a planning horizon...
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3. (5 Marks) An engineering project requires $25,000 as first cost and has a planning horizon of six years. Operating costs are $2,300 per year, and expected annual revenue is $9,200 (both real cashflow). Calculate the project's present worth if the interest rate is 5% (current), the expected annual inflation is 2% and the salvage value is $6,000 (Real). 3. (5 Marks) An engineering project requires $25,000 as first cost and has a planning horizon of six years. Operating costs are $2,300 per year, and expected annual revenue is $9,200 (both real cashflow). Calculate the project's present worth if the interest rate is 5% (current), the expected annual inflation is 2% and the salvage value is $6,000 (Real).
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Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Posted Date:
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