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# HW-Chap-7-1 - Try i = 4.5 \$925 = \$40(7.913 \$1,000(0.6439 =...

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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 ½% \$400 (7.170) + \$400 (3.762) + \$6,000 (0.8007) = \$9,177 > \$9,000 Rate of Return = 2½% + (1/2%) [(\$9,177 − \$9,000)/(\$9,177 − \$8,893)] = 2.81% Engineering Economy ENGR 300 Chapter 7...
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HW-Chap-7-1 - Try i = 4.5 \$925 = \$40(7.913 \$1,000(0.6439 =...

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