Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 61

Beginning in 2011, city hall, administrative offices, and municipal courts in the city of El Paso, Texas, will go on a 10 hour/day, 4-day workweek from the beginning of May through the end of September. The shortened workweek will affect 25% of the city's 6100 employees and will save $42,600 per month for those 5 months, because of reduced fuel, utility, and janitorial expenses. If this work schedule continues for the next 10 years, what is the future worth of the savings at the end of that time (i.e., end of year 2020) Use an interest rate of 0.5% per month.