Docsity
Docsity

Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity


Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan


Guidelines and tips
Guidelines and tips

In-Class Problems #1, Lecture notes of Construction management

In-class practice problems going over the first lecture

Typology: Lecture notes

2023/2024

Uploaded on 02/09/2024

liam-davidson
liam-davidson 🇺🇸

1 document

1 / 1

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
In Class work examples
A medium-size consulting engineering
firm is trying to decide whether it should
remodel its office now or wait and do it
one year from now. If the firm does it
now, the cost will be $38,000. The
interest rate is 10 % per year.
a. What would the cost have to be one
year from now to render the decision
indifferent?
b. If the cost one year from now is
$41,600, should the firm remodel now
or later?
How many years does it take for an investment of
$280,000 to accumulate to at least
$425,000 at 15% per year interest?
A sum of $2 million now is equivalent to
$2.36 million one year from now at what
interest rate?

Partial preview of the text

Download In-Class Problems #1 and more Lecture notes Construction management in PDF only on Docsity!

In Class work examples

A medium-size consulting engineering firm is trying to decide whether it should remodel its office now or wait and do it one year from now. If the firm does it now, the cost will be $38,000. The interest rate is 10 % per year. a. What would the cost have to be one year from now to render the decision indifferent? b. If the cost one year from now is $41,600, should the firm remodel now or later? How many years does it take for an investment of $280,000 to accumulate to at least $425,000 at 15% per year interest? A sum of $2 million now is equivalent to $2. 36 million one year from now at what interest rate?