Question

this is for my engineering economics

#2.59

thank you

through year b at an interest rate of 10% per year? 2.59 Very Light Jets (VLJs) are one-pilot, two-engine jets that weigh 10,000 pounds or less and have only five or six passenger seats. Since they cost half as much as the most inexpensive business jets, they are considered to be the wave of the future. MidAm Charter purchased five planes so that it can initiate service to small cities that have air- ports with short runways. MidAm expects revenue of $1 million in year one, $1.2 million in year two and amounts increasing by $200,000 per year thereafter. If the company's MARR is 10% per year, what is the future worth of the revenue through the end of year 52 Solve using both tabu- lated factors and spreadsheet functions. 2.64 The inte firs cre wo int 2.65 M the the ye so tic en

Answer 1

The future worth of the revenue is $5,163,147. Below is the table done in MS excel

Particulars	Revenue	PVF @ 10%	Discounted Revenue
Year 1	$1,000,000	0.9091	$909,091
Year 2	$1,200,000	0.8264	$991,736
Year 3	$1,400,000	0.7513	$1,051,841
Year 4	$1,600,000	0.6830	$1,092,822
Year 5	$1,800,000	0.6209	$1,117,658
	$7,000,000		$5,163,147