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ECE4802_Homework5_Solution_Sum2007

# ECE4802_Homework5_Solution_Sum2007 - Problem 3(25 points...

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ECE 4802 -- Project Engineering and Professional Practice Homework Assignment #5 (This homework set is due at the beginning of class on June 29, 2007) Problem 1. (25 points) A company purchases a new equipment item today by paying no money down and a payment of \$10,000 per year for 8 years, i.e., eight payments total of \$10,000 each. Determine the actual cost of the equipment in terms of present value, i.e. today’s dollars. Problem 2. (25 points) You decide to save money so that you can purchase a new car. You deposit \$2,000 semiannually (every six months) into a savings account at a nominal interest rate of 5% per year. How much money will be in your account at the end of five years.

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Unformatted text preview: Problem 3. (25 points) What is the equivalent present value of the following set of cash flows? End of 1 st year: \$1000 End of 3 rd year: \$500 End of 6 th year - through end of 15 th year: \$400 Note: There are twelve separate items in the above list, and assume that t = 0 at the present time and that t = n at the end of the n th year. Assume an interest rate of 6% for your calculations. Problem 4. (25 points) If you deposited the above set of cash flows in the bank at 6% interest, how much money would you have in your account at the end of year thirty, i.e. t = 30....
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