HW-Chap-7-1 - Try i = 4.5% $925 = $40 (7.913) + $1,000...

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Engineering Economy ENGR 300 Chapter 7 7-1 $100 = $27 (P/A, i%, 10) (P/A, i%, 10) = 3.704 Performing Linear Interpolation: ( P/A, i%, 10) I 4.192 20% 3.571 25% Rate of Return = 20% + (5%) [(4.192 − 3.704)/(4.912 − 3.571)] = 23.9% 7-15 Try i = 5% $1,000 = (?) $300 (3.546) (0.9524) = (?) $1,013.16 Try i = 6% $1,000 = (?) $300 (3.465) (0.9434) = (?) $980.66 Performing Linear Interpolation: i* = 5% + (1%) (($1,013.6 − $1,000)/($1,013.6 − $980.66)) = 5.4% 7-28 PW of Cost = PW of Benefits $925 = $40 (P/A, i%, 10) + $1,000 (P/F, i%, 10) Try i = 5% $925 = $40 (7.722) + $1,000 (0.6139) = $922.78 (i too high)
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Unformatted text preview: Try i = 4.5% $925 = $40 (7.913) + $1,000 (0.6439) = $960.42 (i too low) i* = 4.97% 7-49 PW of Cost = PW of Benefits $9,000 = $400 (P/A, i%, 8) + $400 (P/A, i%, 4) + $6,000 (P/F, i%, 9) Try i = 3% $400 (7.020) + $400 (3.717) + $6,000 (0.7664) = $8,893 < $9,000 Try i = 2 % $400 (7.170) + $400 (3.762) + $6,000 (0.8007) = $9,177 > $9,000 Rate of Return = 2% + (1/2%) [($9,177 $9,000)/($9,177 $8,893)] = 2.81% Engineering Economy ENGR 300 Chapter 7...
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This note was uploaded on 04/18/2011 for the course ENGINEER 300 taught by Professor Kashayar during the Spring '11 term at California State University Los Angeles .

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HW-Chap-7-1 - Try i = 4.5% $925 = $40 (7.913) + $1,000...

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