New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
engineering economy

Basics Of Engineering Economy 2nd Edition Leland T. Blank, Anthony Tarquin - Solutions

Identify the following funding sources as primarily public or private.a. Municipal bondsb. Retained earningsc. Sales taxesd. Automobile license feese. Bank loansf. Savings accounts g. Engineer’s retirement plan h. State fishing license revenues i. Entrance fees to Disneyland j. State park
What are the primary financial responsibilities of a contractor and the government when operating under a DBOMF contract?
Identify the following as primarily public or private sector undertakings: eBay, farmer’s market, state police department, car racing facility, Social Security, EMS, ATM, travel agency, amusement park, gambling casino, and swap meet.
Identify the following as primarily public or private sector projects.a. Bridge across Ohio Riverb. Coal minec. Baja 1000 race teamd. Consulting engineering firme. County courthousef. Flood control project g. Endangered species designation h. Freeway lighting i. Antarctic cruise j. Crop dusting
In conducting a B/C analysis, why is it best to take a limited viewpoint in determining benefits and disbenefits?
For the cash flows shown, the correct equation for FW2 using the ROIC method at the reinvestment rate of 20% per year is:a. [10,000(1 i ) 6000](1.20) 8000b. [10,000(1.20) 6000(1i)](1.20) 8000c. [10,000(1.20) 6000](1.20) 8000d. [10,000(1.20) 6000](1+ i ) 8000 Year Cash Flow, $0
Jewel-Osco evaluated three different pay-bytouch systems that identify customers by a finger scan and then deduct the amount of the bill directly from their checking accounts. The alternatives were ranked according to increasing initial investment and identified as alternatives A, B, and
If the alternatives are mutually exclusive and the MARR is 15% per year, the alternative to select is:a. either B, C, D or Eb. only Bc. only Dd. only E
If the alternatives are independent and the MARR is 15% per year, the one(s) that should be selected is (are):a. only Db. only D and Ec. only B, D, and Ed. only E
A chemical engineer working for a large chemical products company was asked to make a recommendation about which of three mutually exclusive revenue alternatives should be selected for improving the marketability of personal care products used for conditioning hair, cleansing skin, removing
Assume you are told that by investing $100,000 now, you will receive $10,000 per year starting in year 5 and continuing forever. If you accept the offer, the rate of return on the investment is:a. 4% per yearb. between 6% and 7% per yearc. between 7% and 10% per yeard. over 12% per year
An investment of $60,000 resulted in uniform income of $10,000 per year for 10 years. The rate of return on the investment was closest to:a. 10.6% per yearb. 14.2% per yearc. 16.4% per yeard. 18.6% per year
A small manufacturing company borrowed$1 million and repaid the loan through monthly payments of $20,000 for 2 years plus a single lump-sum payment of $1 million at the end of 2 years. The interest rate on the loan was closest to:a. 0.5% per monthb. 2% per monthc. 2% per yeard. 8% per year
Alternative A has a rate of return of 14% and alternative B has a rate of return of 17%. If the investment required in B is larger than that required for A, the rate of return on the increment of investment between A and B is:a. larger than 14%b. larger than 17%c. between 14% and 17%d. smaller than
When calculating an i* value, all net positive cash flows are assumed to be reinvested at:a. the current market interest rate.b. the i* rate.c. the company’s MARR.d. the company’s cost of capital.q
The lowest rate of return possible is:a. 0%b. c. 100%d. the company’s MARR
A new advertising campaign by a company that manufactures products that rely on biometrics, surveillance, and satellite technologies resulted in the cash flows shown (in $1000 units). Develop one spreadsheet that displays the following: external rate of return using both the ROIC method with ir
A public-private initiative in Florida will significantly expand the wind-generated energy throughout the state. The cash flow for one phase of the project involving Central Point Energy, a transmission utility company, is shown. Calculate the external rate of return (a) using the ROIC method and a
Gemini Products makes vitamin-enriched cereal products for large supermarket chains. They have forecasted the cash flows (in $1000 units) for this and the next 4 years. Develop hand and spreadsheet solutions that determine the EROR for (a) the ROIC method with ir 14% per year, and (b) the MIRR
A company that makes clutch disks for race cars had the cash flows shown for one department.a. Calculate the internal rate of return.b. Calculate the external rate of return using the ROIC method with a reinvestment rate of 15%per year.c. Calculate the external rate of return using the MIRR method
Carl, an engineer working for GE, invested his bonus money each year in company stock. His bonus at the end of each year 1 through 6 has been$5000. At the end of year 7, Carl received no bonus and he sold $9000 worth of stock to remodel his kitchen. In years 8 through 10, he again received a bonus
For the cash flow series shown, find the external rate of return using a reinvestment rate of 15% per year, using (a) the manual ROIC method, and (b) a spreadsheet to verify the answer.Incremental Year Cash Flow, $0 48,000 1 20,000 2 90,000 3 50,000 4 10,000
Faro laser trackers are portable contact measurement systems that use laser technology to measure large parts and machinery to accuracies of 0.0002 inches across a wide range of industrial applications.A customer that manufactures and installs cell phone relay dishes and satellite receiving
Boron nitride spray II (BNS II) from GE’s Advanced Material Ceramics Division is a release agent and lubricant that prevents materials such as molten metal, rubber, plastics, and ceramic materials from sticking to or reacting with dies, molds, or other surfaces. A European distributor of BNS II
The cash flows associated with sales of handheld refractometers (instruments that measure the concentration of an aqueous solution by determining its refractive index) are shown. Determine the cumulative cash flow through year 4 and estimate the expected number of positive, real-number i*
ARCI Instruments manufactures a ventilation controller designed for monitoring and controlling carbon monoxide in parking garages, boiler rooms, tunnels, etc. The net cash flow associated with one phase of the operation is shown on the next page. (a) How many possible rate of return values are
The cash flow (in $1000 units) associated with a new method of manufacturing box cutters is shown below for a 2-year period. (a) Use Descartes’ rule to determine the maximum number of possible rate of return values. (b) Use Norstrom’s criterion to determine if there is only one positive rate of
According to Descartes’ rule of signs, how many possible i* values are there for net cash flows that have the following signs?: (a) (b) (c)
For the following incremental cash flow series, use a spreadsheet to find all rate of return values between 0% and 100%.Year Incremental Cash Flow, $0 50,000 1 22,000 2 38,000 3 2000 4 1000 5 5000
Jenco Electric manufactures washdown adjustable speed drives in open loop, encoderless, and closed-loop servo configurations. The net cash flow associated with one phase of the production operation is shown below.a. How many possible rate of return values are there according to the cash flow rule
For the following incremental cash flow series, what is the maximum number of i* values according to the cash flow rule of signs?Year 0 1 2 3 4 5 6 7 8 Cash Flow, $ 100 40 35 15 11 60 42 12 10
An engineer initiated a rate of return analysis for the infinite-life revenue proposals detailed below, but was unable to complete the evaluation.a. Fill in the eleven blanks in the table.b. What proposal(s) should be selected if they are independent and the MARR is 21% per year?c. What proposal
The four revenue proposals described below are being evaluated.a. If the proposals are independent, which one(s) should be selected with MARR 15.5% per year?b. If the proposals are mutually exclusive, which one should be selected with MARR 10% per year?c. If the proposals are mutually
14.3 12
Allstate Insurance Company is considering adopting one of five fraud detection systems, all of which can be considered to last indefinitely. If the company’s MARR is 14% per year, determine which one should be selected on the basis of a rate of return analysis.A B C D E First cost, $ 10,000
Four different machines are under consideration for improving material flow in a production process. An engineer performed an economic analysis to select the best machine, but some of his calculations were deleted from the report by a disgruntled employee. All machines are assumed to have a 10-year
Five revenue projects are under consideration by General Dynamics for improving material flow through an assembly line. The initial cost (in$1000 units) and life of each project are estimated.Income estimates are not known at this point.Project A B C D E Initial cost, $ 700 900 2300 300 1600
Ashley Foods, Inc. has determined that only one of five machines can be used in one phase of its dairy products operation. The first and annual costs are estimated; all machines are expected to have a 4-year useful life. If the MARR is 20% per year, determine which machine should be selected on the
A WiMAX wireless network integrated with a satellite network can provide connectivity to any location within 10 km of the base station. The number of sectors per base station can be varied to increase the bandwidth. An independent cable operator is considering the three bandwidth alternatives shown
A small manufacturing company expects to expand its operation by adding new product lines. Any or all of four new lines can be added. If the company uses a MARR of 15% per year and a 5-year project period, which products, if any, should the company manufacture? Monetary terms are in $1000.Product 1
The four alternatives described below are being evaluated.a. If the proposals are independent, which one(s)should be selected at a MARR of 17% per year?b. If the proposals are mutually exclusive, which one should be selected at a MARR of 14.5%per year?c. If the proposals are mutually exclusive,
Old Southwest Canning Co. has determined that any one of four machines can be used in a certain phase of its chili-canning operation. The first costs and annual operating costs (AOC) are estimated below, and all machines have a 5-year life. The MARR is 25% per year. (a) Determine which machine
A mechanical engineer is considering two robots for improving materials handling in the production of rigid shaft couplings that mate dissimilar drive components. Robot X has a first cost of $84,000, an annual maintenance and operation (M&O) cost of $31,000, a $40,000 salvage value, and will
Liquid Sleeve, Inc. is a company that makes a sealing solution for machine shaft surfaces that have been compromised by abrasion, high pressures, or inadequate lubrication. The manager is considering adding a metal-based nanoparticle(Type Al or Fe) to its solution to increase the product’s
The Chem-Tex Chemical company is considering two additives for improving the dry-weather stability of its low-cost acrylic paint. Additive A will have a first cost of $110,000 and an annual operating cost of $60,000. Additive B will have a first cost of $175,000 and an annual operating cost
The incremental cash flows for alternatives P and Q are shown. Determine which should be selected using a FW-based rate of return analysis. The MARR is 15% per year and alternative Q requires the larger initial investment.Incremental Year Cash Flow (Q-P)0 $250,000 1–8 50,000 8 30,000
Determine the sum of the cash flows in the incremental difference column (i.e., Y-X) for systems X and Y
For the cash flows shown and in preparation for a PW-based rate of return analysis, determine the incremental cash flow between machines B and A for (a) year 0, (b) year 3, and (c) year 6.
For each of the following scenarios, state whether an incremental investment analysis is required to select an alternative and state why or why not. Assume that alternative Y requires a larger initial investment than alternative X and that the MARR is 20% per year.a. X has i* 22% per year, and Y
A company that manufactures rigid shaft couplings has $600,000 to invest. The company is considering three different projects that will yield the following rates of return:Project X iX 24%Project Y iY 18%Project Z iZ 30%The initial investment required for each project is$100,000, $300,000,
Alternatives X and Y have rates of return of 10%and 18%, respectively. What is known about the rate of return on the increment between X and Y if the investment required in Y is (a) larger than that required for X, and (b) smaller than that required for X? (c) Develop two spreadsheet examples that
What is the overall rate of return on a $100,000 investment that returns 20% on the first $30,000 and 14% on the remaining $70,000?
Why is an incremental analysis necessary when conducting a rate of return evaluation of cost alternatives?
Barron Chemical used a thermoplastic polymer to enhance the appearance of certain RV panels. The initial cost of one process was $130,000 with annual costs of $49,000. Revenues were $78,000 in year 1, increasing by $1000 per year. A salvage value of $23,000 was realized when the process was
An Indium-Gallium-Arsenide-Nitrogen alloy developed at Sandia National Laboratory is said to have potential uses in electricity-generating solar cells. The new material is expected to have a longer life, and it is believed to have a 40% efficiency rate, which is nearly twice that of standard
A new permanent endowment at the University of Alabama will award scholarships to engineering students twice per year (end of June and end of December). The first awards are to be made beginning 5-1⁄2 years after the $20 million lump sum donation is made. If the interest from the endowment is
A broadband service company borrowed $2 million for new equipment and repaid the loan in amounts of $200,000 in years 1 and 2 plus a lump sum amount of $2.2 million at the end of year 3.What was the interest rate on the loan?
Steel cable barriers in highway medians are a low cost way to improve traffic safety without busting state department of transportation budgets. Cable barriers cost $44,000 per mile, compared with $72,000 per mile for guardrail and $419,000 per mile for concrete barriers. Furthermore, cable
Rubber sidewalks made from ground-up tires are said to be environmentally friendly and easier on peoples’ knees. Rubbersidewalks, Inc. of Gardena, CA, manufactures the small rubberized squares that are installed where tree roots, freezing weather, and snow removal require sidewalk replacement or
U.S. Census Bureau statistics show that the annual earnings for a person with a high-school diploma are $35,220 versus $57,925 for someone with a bachelor’s degree. If the cost of attending college is assumed to be $30,000 per year for four years and the foregone earnings during those years is
The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 50,000 m2 and the installed liner cost was $8 per square meter. In order to recover the investment, the owner charged$10 for pick-up loads, $25 for dump truck
The University of California at San Diego is considering a plan to build a 8-megawatt cogeneration plant to provide for part of its power needs. The cost of the plant is expected to be $41 million. The university consumes 55,000 megawatt-hours per year at a cost of $120 per megawatt-hour. (a) If
Texas Governor Rick Perry promised to put hundreds of cameras on the Texas-Mexico border and broadcast the video over the Web so that anyone, anywhere could become a border patroller, helping root out border crime and illegal crossings. As part of that project, Texas secured a federal grant for $3
When Hurricane Katrina struck New Orleans, there was a significant loss of aquarium fish at the Audubon Aquarium of the Americas. FEMA originally stated that the aquarium needed to buy the fish from commercial vendors, a method the agency said would cost $616,849 but would comply with disaster aid
The Closing the Gaps initiative by the Texas Higher Education Coordinating Board established the goal of increasing the number of students in higher education in Texas from 1,064,247 in 2000 to 1,694,247 in 2015. If the increase occurs uniformly and is compounded annually, what rate of increase is
A 473-foot, 7000-ton World War II troop carrier(once commissioned as the SS Excambion) was sunk in the Gulf of Mexico to serve as an underwater habitat and diving destination. The project took 10 years of planning and cost $4 million, which was spent equally at $400,000 in years 1 through 10.
A University of Massachusetts study found that married women who work outside the home do about one hour less of housework per week for every $7500 they earn outside the home. Assume that they hire a housekeeper one time per week for $120; that the $7500 is received in uniform amounts of $625 per
A company that manufactures brushless blowers invested $650,000 in an automated quality control system for blower housings. The resultant savings was $160,000 per year for 5 years. If the equipment had a salvage value of $50,000, what rate of return per year did the company make?
Determine the rate of return per year for the cash flows shown below. Use (a) tabulated factors, and(b) a spreadsheet.Year 1 2 3 4 Cash Flow, $ 80,000 9000 70,000 30,000
Use tabulated factors and a spreadsheet to determine the interest rate per period for the following rate of return equation: 040,000 8000(PA,i*,5) 8000(PF,i*,8).
General Dynamics obtained a 0.5%-per-month$100 million loan to be repaid over a 5-year period.(a) What is the difference in the amount of interest in the second month’s payment if interest is charged on the original principal of the loan rather than on the unrecovered balance? (b) As months pass,
The production of polyamide from raw materials of plant origin, such as castor oil, requires 20%less fossil fuel than conventional production methods.Darvon Chemicals borrowed $6 million to implement the process. If the interest rate on the loan is 10% per year for 10 years, what is the amount of
Spectra Scientific of Santa Clara, CA, manufactures Q-switched solid state industrial lasers for LED substrate scribing and silicon wafer dicing.The company got a $60 million loan, amortized over a 5-year period at 8% per year interest.What is the amount of the unrecovered balance(a) immediately
When interest is charged on the unrecovered balance, if you borrow $10,000 at 10% per year interest and repay the loan in equal payments over a 5-year period, the payment amount is $2638 per year. How much will the annual payment be if the interest rate is charged on the initial loan amount instead
In percent, what is (a) the highest, and (b) the lowest rate of return that is possible?
If you have the annual worth of an alternative that has a 5-year life, you can obtain its perpetual annual worth by:a. doing no calculations, since perpetual annual worth equals the annual worth.b. multiplying the annual worth by (A/P,i,5).c. dividing the annual worth by i.d. multiplying the annual
If you have the capitalized cost of an alternative that has an infinite life, you can get its annual cost over a very long number of years by:a. multiplying the capitalized cost by i.b. multiplying the capitalized cost by (A/F,i,n).c. dividing the capitalized cost by (P/A,i,n).d. dividing the
The equivalent annual worth of alternative A over an infinite time period is closest to:a. $25,000b. $27,200c. $31,600d. $37,100
The equivalent annual worth of alternative B is closest to:a. $25,130b. $28,190c. $37,080d. $39,100
The equivalent annual worth of alternative A is closest to:a. $25,130b. $37,100c. $41,500d. $42,900
The AW values of three revenue alternatives are$23,000 for A, $21,600 for B, and $27,300 for C. On the basis of these AW values, the correct decision is to:a. select alternative A.b. select alternative B.c. select alternative C.d. select the do nothing alternative.
The initial cost of a packed-bed degassing reactor for removing trihalomethanes from potable water is $84,000. The annual operating cost for power, site maintenance, etc. is $13,000. If the salvage value of the pumps, blowers, and control systems is expected to be $9000 at the end of 10 years, the
The AWs of three cost alternatives are $23,000 for Alternative A, $21,600 for B, and $27,300 for C. On the basis of AW values, the best economic choice is:a. select alternative A.b. select alternative B.c. select alternative C.d. select the do nothing alternative.
An automation asset with a high first cost of $10 million has a capital recovery (CR) of $1,985,000 per year. The correct interpretation of this CR value is that:a. the owner must pay an additional $1,985,000 each year to retain the asset.b. each year of its expected life, a net revenue of
If you have the present worth of an alternative with a 5-year life, you can obtain its annual worth by:a. multiplying the PW by i.b. multiplying the PW by (A/F,i,5).c. multiplying the PW by (P/A,i,5).d. multiplying the PW by (A/P,i,5).
In comparing alternatives that have different lives by the annual worth method,a. the annual worth value of both alternatives must be calculated over a time period equal to the life of the shorter-lived one.b. the annual worth value of both alternatives must be calculated over a time period equal
0.2 Life, years 5 Almost permanent
You are an engineer with Yorkshire Shipping in Singapore. Your boss, Zul, asks you to recommend one of two methods to reduce or eliminate rodent damage to silo-stored grain as it awaits shipment.Perform an AW analysis at 10% per year compounded quarterly. Dollar values are in millions.Alternative A
ABC Drinks purchases its 355 ml cans in large bulk from Wald-China Can Corporation. The finish on the anodized aluminum surface is produced by mechanical finishing technology called brushing or bead blasting. Engineers at Wald are switching to more efficient, faster, and cheaper machines to supply
1.3 8$ per year Life, years 5 10
Harmony Auto Group sells and services imported and domestic cars. The owner is considering the outsourcing of all its newcarwarranty servicework toWinslow, Inc., a private repair service that works on any make and year car. Both a 5-year contract basis or 10-year license agreement are available
A West Virginia coal mining operation has installed an in-shaft monitoring system for oxygen tank and gear readiness for emergencies. Based on maintenance patterns for previous systems, costs are minimal for the first few years, increase for a time period, and then level off. Maintenance costs are
A major repair on the suspension system of Jane’s 3-year old car cost her $2000 because the warranty expired after 2 years of ownership. Based on this experience, she will plan on additional $2000 expenses every 3 years henceforth. Also, she spends $800 every 2 years for maintenance now that the
Baker|Trimline owned a specialized tools company for a total of 12 years when it was sold for$38 million cash. During the ownership, annual net cash flow varied significantly as follows:Year 1 2 3 4 5 6 7 8 9 10 11 12 Net Cash Flow, 4 0 1 3 3 1 4 6 8 10 12 12 $ million per year The company made
Cheryl and Gunther wish to place into a retirement fund an equal amount each year for 20 consecutive years to accumulate just enough to withdraw$24,000 per year starting exactly one year after the last deposit is made. The fund has a reliable return of 8% per year. Determine the annual deposit for
For the cash flows below, use an annual worth comparison to determine which alternative is best at an interest rate of 1% per month.X Y Z First cost, $ 90,000 400,000 900,000 M&O costs, $/month 30,000 20,000 13,000 Overhaul every 10 years, $ — — 80,000 Salvage value, $ 7000 25,000
Compare the alternatives below using the annual worth method at an interest rate of 10% per year.Use (a) tabulated factors, and (b) calculator functions.
Calculate the infinite-life equivalent annual cost of$5,000,000 in year 0, $2,000,000 in year 10, and$100,000 in years 11 through infinity. The interest rate is 10% per year.
Calculate the equivalent annual cost for years 1 through infinity of $1,000,000 now and $1,000,000 three years from now at an interest rate of 10% per year.
Blue Whale Moving and Storage recently purchased a warehouse building in Santiago. The manager has two good options for moving pallets of stored goods in and around the facility. Alternative 1 includes a 4000-pound capacity, electric forklift (P $30,000; n 12 years; AOC $1000 per year; S

Showing 1700 - 1800 of 4707

First
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved