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ESci131n
Engineering Economy
Assignment 12
Coverage: Geometric Gradient
Deadline: 6pm, Wednesday, 23 June 2021

Class Number 12
Class Schedule 3 -4:30 MW
Solve the following problems. Present a complete and comprehensive solution
following the traditional format (given, required and solution) using the required units.
Solutions/final answers not using the correct units will not earn points. Truncated or
“short-cut” solutions will not be accepted. Construct the correct cash flow diagram for
every problem. Round off your final answer to two (2) decimal places. Enclose your final
answer with a rectangle otherwise it will not be credited.

1. It is estimated that a year after its purchase, the maintenance cost of a new office photocopier
will be approximately P3,000 and is likely to increase by 8% annually. How much should the
office prepare now to sustain the printer’s maintenance costs for the next five years if money
is worth 6%? (3pts)
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2. A piece of land is purchased at P350,000. It is to be paid in four years with each annual
payment 20% less than the previous payment. How much will be the last payment if money is
worth 13%? (3pts)
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