How much will the gasoline have to cost in order for buyer

Reference no: EM131235831

Engineering Project Management & Economic Analysis Assignment

- Show your work when doing calculation and cash flow diagram.Type formulas and make sure in include units. Alternatively, you can write your answer and either scan it or take a picture and insert it into a Word document.

- Submit the assignment in Black Board only (Only MS Word or PDF file. Don't use the textbox in Blackboard to write your answers). No in-class submission.

1. The initial cost of a bridge that is expected to be in place forever is $70 million. Maintenance can he done at 1-, 2-, 3-, or 4-year intervals, but the longer the interval between servicing, the higher the cost. The costs of servicing are estimated at $83,000. $91,000, $125,000, and $1 83,0(X) for intervals of I through 4 years, respectively. What interval should be scheduled for maintenance to minimize the overall equivalent annual cost? The interest rate is 8% per year.

2. The National Highway Traffic Safety Administration raised the average fuel efficiency standard to 35.5 miles per gallon (mpg) for cars and light trucks by the year 2016. The rules will cost consumers an average of $926 extra per vehicle in the 2016 model year. Assume a person purchases a new car in 2016 that gets 35.5 mpg and keeps it for 5 years. If the person drives an average of 1000 miles per month and gets an extra 10 miles per gallon of gasoline, how much will the gasoline have to cost in order for the buyer to recover the extra investment in 5 years at an interest rate of 0.75% per month?

Attachment:- Interest_Table.pdf

Reference no: EM131235831

Questions Cloud

When the zero curve is downward sloping the reverse is true : Why liquidity preference theory is consistent with the observation that the term structure of interest rates tends to be upward-sloping more often than it is downward-sloping.

Explain why testability is essential for performance testing : What kinds of performance tests might be required for a word processing system? A payroll system? An automated bank teller system? A water-quality monitoring system? A power plant control system?

What is the probability that bob will oversleep : Bob sets two alarm clocks (battery-powered) to be sure he arises for his Monday 8:00 A.M. accounting exam. There is a 46 percent chance that either clock will wake Bob.

The approximate relationship between price and demand : A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is. What is the number of units that should be produced and sold eac..

How much will the gasoline have to cost in order for buyer : How much will the gasoline have to cost in order for the buyer to recover the extra investment in 5 years at an interest rate of 0.75% per month?

Why a loan in repo market involve very little credit risk : Why are US Treasury rates significantly lower than other rates that are close to risk-free? - Why does a loan in the repo market involve very little credit risk?

How a set of configuration tests might be designed : A navigation system is about to be installed on an airplane. What issues must be considered as you design the installation test?

Marketing a new brand of ice cream : The president of a company has a hunch that there is a 0.40 probability that the company will be successful in marketing a new brand of ice cream. Is this a case of classical, relative frequency, or subjective probability?

Use the duration to calculate the effect on the bonds price : What is the bond's price? - What is the bond's duration? - Use the duration to calculate the effect on the bond's price of a 0.2% decrease in its yield.

User Account

All Pages