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Engineering economics and feasibility study plzzz quick Q1) Engineer Hazem took a loan ($15,000) from a bank at 11.4949 %/year compounded quarterly. He agreed to
Engineering economics and feasibility study
plzzz quick
Q1) Engineer Hazem took a loan ($15,000) from a bank at 11.4949 %/year compounded quarterly. He agreed to pay off the loan in six equals annual payments (end of year payments) starting at the end of the first year. After he made the third payment he faced some financial problems and agreed with the bank to reschedule the remaining 3 payments with 8 payments (starting at the end of the fourth year) at 13.976% per year compounded continuously. ( 20 marks) (Make approximations and do not make interpolation) 1- Determine the value of the first 3 payments? (10 marks) 2- Determine the value the last 8 payments? (10 marks) Q2) A municipality decided to implement a project to solve the traffic jam at a certain cross section in the main street. They have identified two alternatives as follows: ( 10 marks) Building a steel bridge (a)above the street Digging a tunnel ()under the street Item Information Item Information Cost per ton for the $1,000 Initial cost $100,000 steel Steel quantity 500 ton required Operation and $1,000 Operation and $500 each two years starting at maintenance / year maintenance cost the end of the second year Salvage value $200/ton Salvage value Useful life Useful life Infinity If MARR, i= 5%, help the municipality management to choose from among the two alternatives using: 1) Present worth analysis (12 marks) 2) Annual worth analysis ( 8 marks) 30 yearsStep by Step Solution
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