Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 1, Problem 25P
To determine

The rate of return on the investment.

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A design-build engineering firm completed a pipeline project wherein the company realized a profit of $2.3 million in one year. If the amount of money the company invested was $6 million, what was the rate of return on the investment?
A plaintiff in a successful lawsuit was awarded a judgment of $4800 per month for 5 years. The plaintiff has the need of a fairly large sum of money immediately for an investment of his own, and has offered the defendant the opportunity to pay off the award in a lump-sum amount of $110,000. If the defendant accepts the offer and pays the $110,000 now, what rate of return will the defendant have made by not paying the 60 monthly amounts?
A broadband service company borrowed $2 million for new equipment and repaid the principal of the loan plus $275,000 interest after 1 year. What was the interest rate on the loan?

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Basics Of Engineering Economy

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