Basics of Engineering Economy 1st Edition by Leland Blank,Anthony Tarquin

Exercise 8

The CFO of Marta Aaraña Cement Industries knows that many of the diesel-fueled systems in its quarries must be replaced at an estimated cost of $0 million 10 years from now.A fund for these replacements has been established with the commitment of $ million at the end of next year (year 1) with 10% increases through the 10th year.If the fund earns at 5.25% per year, will the company have enough to pay for the replacements?