Zion

5-56 Jane Roe’s plan is to accumulate $250,000 in her personal savings account by the time she retires at 60. The loner she stalls on getting started, the tougher it will be to meet her objective. Jane is now 25 years old. Cerate a spreadsheet to complete the following table to show how much Jane will have to save each year (assuming she waits N years to start saving) to have @250,000 in her account when she is 60. Comment on the pattern you observe in the table.

5-57Refer to Example 5-11. Note that all of the equivalent worth results are positive. What happens if the MARR increases to 15% or decreases to 5%? Use the IRR result to guess the smallest integer value for the MARR that will result in a negative equivalent worth result. Confirm your answer by manipulating spreadsheet E 5-11 on the Student’s CD. (5.6)

Adamson University College of Engineering Industrial Engineering Department

ENGINEERING ECONOMY

Submitted by:

MARIVIC S. VILLANUEVA

Submitted to:

ENGR. NOE D. ENRIQUEZ

August 13, 2007