Determine the five equivalent values

Reference no: EM131967246

Question: A design-build-operate engineering company in Texas that owns a sizable amount of land plans to lease the drilling rights (oil and gas only) to a mining and exploration company. The conract calls for the mining company to pay $20,000 per year for 20 years beginning 3 years from now (i.e., beginning at the end of year 3 and continuing through year 22 plus $10,00 six years from now and $15,000 sixteen years from now. Utilize engineering economy relations by hand and by spreadsheet to determine the five equivalent values listed below at 16% per year.

1. Total present worth P in year 0

2. Future worth F in year 22

3. Annual series over all 22 years

Reference no: EM131967246

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