Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 17

Pinpoint Laser Systems is planning to set aside $260,000 now for possibly replacing its 4-pole, 38-MW synchronous motors when it becomes necessary. If the replacement is expected to take place in 3 years, how much will the company have in its investment set-aside account Assume the company can achieve a rate of return of 12% per year, compounded quarterly.