Engineering Economy 7th Edition by LELAND BLANK, ANTHONY TARQUIN | 9780073376301 | 0073376302 | Holooly

Engineering Economy

826 SOLVED PROBLEMS

( a ) Determine the values of sample average and standard deviation of the data in Problem 19.11. ( b ) Determine the values 1 and 2 standard deviations from the mean. Of the 50 sample points, how many fall within these two ranges?

Verified Answer:

(a)

Convert

P(X)

da...

(a) Calculate the amount deposited 1 year ago to have $1000 now at an interest rate of 5% per year. (b) Calculate the amount of interest earned during this time period.

Verified Answer:

(a) The total amount accrued ($

1000

...

(a) Define the following tax terms: graduated tax rates , marginal tax rate , and indexing . (b) Describe a fundamental difference between each of the following terms: net operating income (NOI), taxable income (TI), and net operating profit after taxes (NOPAT).

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(a)

Graduated rates: higher taxable...

(a) Determine the payback period at an interest rate of 8% per year for an asset that initially cost $28,000, has a scrap value of $1500 whenever it is sold, and generates cash flow of $2900 per year. (b) If the asset will be in service for 12 years, should it be purchased?

Verified Answer:

(a)

0 = -28,000 + 2900(P/A,8...

(a) Estimate the value of the ENR construction cost index by using the average (compounded) percentage change in its value between 1995 and 2005 to predict the value in 2009. (b) How much difference (numerical) is there between the estimated and actual 2009 values? Is this an underestimate or

Verified Answer:

(a)

First find the compounded perce...

(a) For an interest rate of 18% per year, compounded continuously, calculate the effective monthly and annual interest rates. (b) An investor requires an effective return of at least 15%. What is the minimum annual nominal rate that is acceptable for continuous compounding?

Verified Answer:

(a)

The nominal monthly rate is [la...

(a) Graph the sensitivity of what a person should be willing to pay now for a 9%, $10,000 bond due in 10 years if there is a 30% change in (1) face value, (2) dividend rate, or (3) required nominal rate of return, which is expected to be 8% per year, compounded semiannually. The bond pays dividends

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(a)

PW

calculates th...

(a) How many alternatives are possible from four independent projects identified as W, X, Y, and Z? (b) List all of the possibilities.

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(a)

Number of alternatives

...

(a) What is meant by the do-nothing alternative? (b) When is the do-nothing alternative not an option?

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(a)

The do-nothing alternative mean...

A 0.75 million gallon per day (MGD) induceddraft packed tower for air-stripping trihalomethanes from drinking water costs $58,890. Estimate the cost of a 2-MGD tower if the exponent in the cost-capacity equation is 0.58.

Verified Answer:

{ C }_{ 2 } = 58,890{ (2/0.75) }^{ 0.58 } =...

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