Engineering Economy

please solve all the problems step by step

Problem 1 A young couple is considering an investment that will give an income of $162,000 six years from now, how much should they deposit now assuming an interest rate of 12% per year? Problem 2 A worldwide investment company is considering opening new offices in the middle enst now. Over the 25 years the offices are expected to have a positive cash flow of $250,000 per year starting next year. At an interest rate of 12%, what is the equivalent present worth? Problem 3 A farmer plans to have enough money to purchase a new truck in 3 years. If the truck will cost $250,000, how much should he set aside each year if the account earns 9% per year? Problem 4 A new airline company expects to spend $1 million the first year for advertising, with amounts decreasing by $100,000 each year. Income is expected to be $4 million the first year, increasing by $500,000 each year. Determine the equivalent annual worth in years 1 through 5 of the company's net cash flow at an interest rate of 16% per year. Problem 5 A recycle company is considering a new process to reduce costs. If the new process will cost $1.8 million now, how much must be saved each year to recover the investment in 6 years at an interest rate of 12% per year? Problem 6 Calculate the present worth of a geometric gradient series with a cash flow of $35,000 in year 1 and deereases by 5% each year through year 6 . The interest rate is 10% per year. Problem 7 A manufacturing company wants to start saving money for replacement of old production line. If the company invests $5000 at the end of year I but decreases the amount invested by 5% each year, how much will be available 5 years from now at an earning rate of 8% per year? Problem 8 A company invested $40,000 each year for 5 years to get a profit of $451,000 in year 5 , what rate of return did the company make on this investment? Problem 9 A factory spends $60,000 to purchase a new machine to increase the annual income by $10,000. At a rate of return of 12% per year, find the required number of years for this increment. 2