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# HW-Chap-5-1 - security considerations 5-37 Since the...

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Engineering Economy ENGR 300 Chapter 5 5-1 P = \$50 (P/A, 10%, 4) + \$50 (P/G, 10%, 4) = \$50 (3.170) + \$50 (4.378) = \$377.40 5-4 Q = \$50 (P/A, 12%, 6) (F/P, 12%, 2) = \$50 (4.111) (1.254) = \$257.76 5-26 (a) PW Costs = \$700,000,000 + \$10,000,000 (P/A, 9%, 80) = \$811,000,000 PW Receipts = (\$550,000) (90) (P/A, 9%, 10) + (\$50,000) (90) (P/G, 9%, 10) + (\$1,000,000) (90) (P/A, 9%, 70) (P/F, 9%, 10) = \$849,000,000 NPW = \$849,000,000 - \$811,000,000 = \$38,000,000 This project meets the 9% minimum rate of return as NPW is positive. (b) Other considerations: Engineering feasibility, Ability to finance the project, Effect on trade with Brazil, Military/national
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Unformatted text preview: security considerations 5-37 Since the necessary waste treatment and mercury recovery is classed as “Fixed Output,” choose the alternative with the least Present Worth of Cost. Foxhill PW of Cost = \$35,000 + (\$8,000 − \$2,000) (P/A, 7%, 20) − \$20,000 (P/F, 7%, 20) = \$35,000 + \$6,000 (10.594) − \$20,000 (0.2584) = \$93,396 Quicksilver PW of Cost = \$40,000 + (\$7,000 − \$2,200) (P/A, 7%, 20) = \$40,000 + \$4,800 (10.594) = \$90,851 Almeden PW of Cost = \$100,000 + (\$2,000 − \$3,500) (P/A, 7%, 20) = \$100,000 − \$1,500 (10.594) = \$84,109 Select the Almaden bid....
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