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For the cash flows shown, determine the equivalent uniform annual worth in years 1 through 5 at an interest rate of 18% per year, compounded
For the cash flows shown, determine the equivalent uniform annual worth in years 1 through 5 at an interest rate of 18% per year, compounded monthly. year Cash flow in $ 1 0 2 0 3 350,000 4 350,000 5 350,000 Problem #2 (problem #4.62 from the book): For the cash flow shown on the table, determine the future worth in year 5. year 0 1-4 5 Cash flow in $ 5000 6000 9000 Interest rate per year 12% 12% 20% From Chapter 5: Problem #3 (Problem #5.7 in the book): Present worth problem: You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high pressure hydraulic hoses. The parameter associated with each alternative have been estimated. Which one should be selected on the bases of a present worth comparison at an interest rate of 12% per year. Why is yours the correct choice? Alternatives First cost in $ Maintenance cost, $/year Salvage value in $ Life in years X -45,000 -8000 2000 5 Y -58,000 -4000 12000 5 Future worth
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