(5 points) Identify the four engineering economy symbols and their values from t
ID: 2571448 • Letter: #
Question
(5 points) Identify the four engineering economy symbols and their values from the following problem statement. Use a question mark with the symbol whose value is to be determined. 1. Collins Mechanical Products is planning to set aside $150,000 now for possible replacing its large synchronous refiner motors whenever it becomes necessary. If the replacement is not needed for 7 years, how much will the company have in its investment set-aside account, provided it achieves a rate of return of 11% per year? (5 points) Construct a cash flow diagram for the following cash flows: $25,000 outflow at time 0, $9000 per year inflow in years I through 5 at an interest rate of 10% per year, and an unknown future amount in year 5. 2.Explanation / Answer
1 If $150,000/- is set aside now, after 7 years it will become $311,424 @11% return per year
Cumulative future value factor for 7 years is 2.07616.
$150000 X 2.07616 = $311424
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