Determine the five equivalent values

Assignment Help Financial Management

Reference no: EM131447266

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: EM131447266

Questions Cloud

Software for the university class registration system : Your firm has been hired to develop new software for the university's class registration system. Under the contract, you will receive $500,000 as an upfront payment. What is the IRR of the opportunity now? What are the IRRs of this opportunity?

Draft a brief informal performance appraisal for bridgewater : Message Strategies: Negative Performance Reviews [LO-7] Elaine Bridgewater, the former professional golfer you hired to oversee your golf equipment company's relationship with retailers, knows the business inside and out.

Compute the firms total revenue and total cost : List the assumptions of the perfectly competitive model. Calculate the firm's total revenue (TR), total cost (TC), and profit assuming the firm produces this level of output.

Characteristics of high formalization in an organization : What are the characteristics of high formalization in an organization? It's advantages and disadvantages?

Determine the five equivalent values : 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. Utilize engineering economy relations by hand and by spreadsheet to dete..

Develop a comprehensive business continuity plan : You have been hired as a consultant to design BCP for SanGrafix, a video and PC game design company. SanGrafix's newest game has become a hot seller, and the company anticipates rapid growth.It's moving into a new facility and will be installing ..

Write a statement to communicate the advantage of the groups : You're the vice president of member services at CafeMom, reporting to CEO Michael Sanchez. In addition to developing new online services, a key part of your job responsibility is crafting messages that describe the new services and persuade member..

Discuss the information technology specialization : Select a System/Software Development Life Cycle (SDLC) model and methodology then apply this model and methodology to a project using the Information Technology (IT) specialization in Banking Industry Be sure to define the SDLC model and methodol..

New job in human resources management : You've just taken a new job in human resources management and the organization's president gave you this high priority task: Give us a plan that can make performance reviews motivating to the recipients and their bosses alike.

User Account

All Pages