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engineering economy Q1. An economic analysis reveals that a transaction has a present value P, a Future Value F, an annual interest rate i, a
engineering economy
Q1. An economic analysis reveals that a transaction has a present value P, a Future Value F, an annual interest rate i, a possible uniform end-of-period cash flow of A and a period N : Also draw the cash flow diagrams. (10 marks) A. If P=$250,N=15 years, F=$700 what is i ? (hint: use table or equation) B. If F=$300,i=8%, and P=$100 what is N in years C. If N=12 years, P=$780,i=12%, what is A D. If A=$120,N=15 years and i=10.5% what is P ? E. If P=$250,N=5 years and i=7.5% annual compounded semiannually, what is F ? { Hint: use i=(1+Mr)M1} Where: [ r be the nominal annual interest rate and M the number of compounding periods per year] Step by Step Solution
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