A low-cost noncontact temperature measuring tool may be able to identify railroad car wheels that are in need of repair long before a costly structural failure occurs. If the BNF railroad saves $100,000 in year 1, $110,000 in year 2, and amounts increas­ing by $10,000 each year for 5 years, what is the future worth of the savings in year 5 at an interest rate of 10% per year?

What will be an ideal response?


A = 100,000 + 10,000(A/G,10%,5)
= 100,000 + 10,000(1.8101)
= $118,101

F = 118,101(F/A,10%,5)
= 118,101(6.1051)
= $721,018

Trades & Technology

You might also like to view...

Which of the following CMUs has slotted webs that are broken before being laid in the wall?

A) A-unit B) Sash unit C) Standard unit with three webs D) H-unit E) Bond beam unit

Trades & Technology

What is the color code used to identify a radioactive area?

What will be an ideal response?

Trades & Technology

The type of fan or blower with a blade design that is self-cleaning and a good choice for air containing a lot

of dust or grease is the _____. a. forward-curved centrifugal b. radial c. backward-inclined centrifugal d. ducted fan

Trades & Technology

Three common types of nails include:

A) Hollow-point, blunt-point, and sharp-point. B) Round-head, hex-head, and flat-head. C) Forged, wrought, and cast. D) Common nails, box nails, and finishing nails.

Trades & Technology