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CEE 3000.docx - CEE 3000: CIVIL ENGINEERING SYSTEMS...

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CEE 3000: CIVIL ENGINEERING SYSTEMSHOMEWORK 6: Engineering Economy Problem Set 2Spring 2021Assigned:3/25/2021 | Due: 4/1/2021Name:Date: _____3/26/2021________1.Assume that the Class of 2021 in the School of Civil & Environmental Engineering atGeorgia Tech has decided to set up a scholarship fund for outstanding students, upongraduation.They have collectively pledged to pay an amount of $20,000 into the fundfour years from now, subsequently increasing it by $2,000 every four years (i.e., $22,000at EOY 8, $24,000 at EOY 12, $26,000 at EOY 16….).How much would the Class of 2021have to invest today at an interest rate of 5% to ensure that this cash flow is sustained inthe following two scenarios? (Hint: Consider using the effective 4-year rate and treatingthe cash flow as an arithmetic gradient series.)a.For 40 years (5 points)

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Term
Spring
Professor
Meyer
Tags
Civil Engineering, Net Present Value, School of Civil Environmental Engineering

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