Value design engineering
Losses are projected to be $50 million in year one, $40 million in year two, $30 million in year three and $5 million in year four. An interest rate of 10% per year is used.
1 The present worth of the losses for the first three years is nearest to:
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A) $90,124,000
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B) $101,054,000
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C) $124,345,000
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D) $147,636,000
2 The present worth of the losses for all four years is nearest to:
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A) $101,054,000
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B) $104,244,000
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C) $110,395,000
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D) $124,345,000
3 The equivalent uniform annual worth of the losses through year four is nearest to:
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A) $29,533,000
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B) $30,621,000
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C) $31,882,000
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D) $32,889,000
4 In order to recover the losses by the end of year nine, the company’s equivalent uniform annual profit in years five through nine must be nearest to:
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A) $25,631,000
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B) $36,922,000
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C) $44,288,000
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D) $51,369,000
5- Expenditures for maintenance of a certain machine are expected to be $900 in year two, $1,400 in year five, and a uniform amount of $2,000 in years six through nine. At an interest rate of 10% per year, find the equivalent annual worth of expenditure between [1, 9], years 1 and 9 inclusive.
6- Costs for maintenance of buildings at an industrial complex are expected to be $1,000 in year three, $1,200 in year four and amounts increasing by $200 per year thereafter through year nine. At an interest rate of 12% per year, calculate the equivalent future worth at year 9.
7- The costs of fuel for a smelting operation are expected to be $50,000 in year three, $52,500 in year four and amounts increasing by 5% per year thereafter through year ten. At an interest rate of 8% per year, calculate the present worth.
8- Payments of $1,000 in year two and $5,000 in year five are equivalent to uniform payments in years three through seven at an interest rate of 12%. Calculate those uniform payments.
9- How many uniform annual receipts would be required from now that an initial investment of $1,000,000 would be recovered? Note that the annual receipts are $131,000 and starts three years from now at an interest rate of 8% per year.
SAMPLE ASSIGNMENT
