# hw3 - CE 167: Engineering Project Management HO12 Time...

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CE 167: Engineering Project Management HO12 1 Time Value of Money Assignment 3 HO: Thursday February 7, 2008 DUE: Thursday February 14, 2008 All work must be your own! ALWAYS draw a cash flow diagram for any engineering-economy problem you do for this class and also outside of this class! 1. Your grandparents want to set aside money in an investment opportunity 2 years from now, that is large enough for you to withdraw \$15,000 per year to pay for your university tuition for 5 years starting 3 years from now. If the rate of return is 5% per year, how much should they set aside? 2. Assume that a medium-sized town now has a peak electrical demand of 110 megawatts, increasing at an annually compounded rate of 10%. The current generating capacity is 240 megawatts. 2.1. How soon will additional generating capacity be needed on-line? 2.2. If the new generator is designed to take care of needs 5 years past the on-line date, what size should it be? Assumed that the present generators continue in service.

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## This note was uploaded on 02/27/2011 for the course CE 167 taught by Professor Horvath during the Fall '08 term at Berkeley.

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hw3 - CE 167: Engineering Project Management HO12 Time...

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