Engineering Economy 2 answer part c 3 all of problem 3 Hams

Hams Problem 1 Exelon is contemplating spending $5000 to upgrade their nuclear reactor four years from now After which they will be spending $15000 yearly on routine maintenance for the next 5 years. If the company wants to know the equivalent value now of the planned expenditure assuming Exelon MARR is 8%; a) Determine the engineering economy symbols and their value for each option. b) Construct the cash flow diagram c) Calculate the equivalent value now Problem 2 a) Maintenance costs for the fermentation units in a Kalona biofuel production plant are expected to be $80,000 three years from now and another $95,000 six years kalona biofuel product plant wants to set aside enough money now to cover these costs. to be $80,000 three years from now and another $95,000 six years from now. If semi. Costs, w much must be invested at an interest rate of 8% per year compounded semi- annually? ho b) An interest rate of 12% per year compounded quarterly is equivalent to what effective interest rate per year? Problem3 orporation plans to finance a site reclamation project that will require ea receiv Agro Allied incorporation plans to finance a site reclamation project cleanup period. If the company borrows S4.5 million now and wants to earn 16% per new compounded semiannually on its investment, how much will the company have to lump sum payment when the project is over? Formulas needed: I, i per period = (1 + r/m)m-1

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