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(Test Prep) Engineering Economic Analysis questions Included with answers already, need help identifying what values correspond to which variable/writing the original equation without the numbers.

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(Test Prep) Engineering Economic Analysis questions Included with answers already, need help identifying what values correspond to which variable/writing the original equation without the numbers. Will rate up!

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BKM Systems sales revenues are shown below. Calculate the equivalent annual worth (years 1 through 7), using an interest rate of 10% per year. Year Disbursement, $ Year Disbursement, $ 5000 4000 5000 WNBC 4000 5000 4000 5000 Solution A = 4000 + 1000(F/A,10%,4)(A/F,10%,7) =4000 + 1000(4.6410)(0.10541) = $4489.21Calculate the present worth in year 0 of the following series of disbursements. Assume that i = 10% per year. Year Disbursement, $ Year Disbursement, $ 0 5000 3500 5000 3500 5000 3500 5000 5000 10 5000 5000 Solution P=3500(P/A,10%,3) + 5000(P/A,10%,7)(P/F,10%,3) = 3500(2.4869) + 5000(4.8684)(0.7513) = $26.992Toyco Watercraft has a contract with a parts supplier that involves purchases amounting to $150,000 per year, with the first purchase to be made now, followed by similar purchases over the next 5 years. Determine the present worth of the contract at an interest rate of 12% per year. Answer: CFD: P=150k +150k(P/A,12%,5) P= $690,750 1=12% 5 150k $150kCalculate the annual worth in years 1 through 10 of the following series of incomes and expenses, if the interest rate is 10% per year. Year Income, S/Year Expense, $/Year 10.000 2000 1-6 800 200 7-10 900 300 Solution A = 8000(A/P,10%,10) + 600 = 8000(0.16275) + 600 = $1902Lifetime savings accounts, known as LSAs, would allow people to invest after-tax money without being taxed on any of the gains. If an engineer invests $10,000 now and $10,000 each year for the next 20 years, how much will be in the account immediately after the last deposit if the account grows by 12% per year? F Answer: CFD: P = 10K + 10K(P/A, 12%, 20) F = P(F/P,12%,20) 1=12% 20 F= $816,990 101- 10kCalculate the future worth (in year 11) of the following income and expenses, if the interest rate is 10% per year. Year Income, S Expense, S 12,000 3000 1-6 800 200 7-11 900 200 Answer: F =9000(F/P,10%, 11) + 600(F/A, 10%,11) + 100(F/A, 10%,5) = 9000(2.853) + 600(18.531) + 100(6.105)=$37,406What is the equivalent worth in year 5 of the following series of income and disbursements, if the interest rate is 11% per year? Year Income, $ Expense, $ 0 0 9000 1-5 6000 6000 6-8 6000 3000 9-14 8000 5000 Answer: CFD: .. b P1=$= 3000(P/A, 11%,9) - 9000(F/P, 11%, 5) - P = $1,445

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