1. Engineering economics plays a crucial role in the manufacturing industry, where it focuses on the...

Transcribed Image Text:

1. Engineering economics plays a crucial role in the manufacturing industry, where it focuses on the financial aspects of engineering projects. (a) How can the application of simple and compound interest rates, along with the concepts of P (Principal), F (Future Value), and A (Annuity), contribute to financial decision- making in the Malaysian project and facility industry? Propose strategies for effectively utilising simple and compound interest rates, as well as the concepts of P, F, and A, in financial decision-making processes in the Malaysian project and facility industry. (10) (b) A company has two alternatives for manufacturing a certain device: Plan A: Buy a machine for RM2000, which would permit the device to be manufactured for RM3.00 per unit. Plan B: Buy a machine for RM20,000, which would permit the device to be manufactured for RM1 per unit. Assuming a volume of 3000 devices per year, what is the break-even year for these two plans? Ignore discounting. (10) 1. Engineering economics plays a crucial role in the manufacturing industry, where it focuses on the financial aspects of engineering projects. (a) How can the application of simple and compound interest rates, along with the concepts of P (Principal), F (Future Value), and A (Annuity), contribute to financial decision- making in the Malaysian project and facility industry? Propose strategies for effectively utilising simple and compound interest rates, as well as the concepts of P, F, and A, in financial decision-making processes in the Malaysian project and facility industry. (10) (b) A company has two alternatives for manufacturing a certain device: Plan A: Buy a machine for RM2000, which would permit the device to be manufactured for RM3.00 per unit. Plan B: Buy a machine for RM20,000, which would permit the device to be manufactured for RM1 per unit. Assuming a volume of 3000 devices per year, what is the break-even year for these two plans? Ignore discounting. (10)

Answer rating: 100% (QA)

a In the Malaysian project and facility industry the application of simple and compound interest rates along with the concepts of Principal P Future V... View the full answer