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
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
engineering economy
Engineering Economy 8th edition Leland T. Blank, Anthony Tarquin - Solutions
The Department of Energy is proposing new rules mandating either a 20% increase or a 35% increase in clothes washer efficiency in 3 years. The 20% increase is expected to add $100 to the current price of a washer, while the 35% increase will add $240 to the price. If the cost for energy is $80 per
Parker Hannifin of Cleveland, Ohio manufactures CNG fuel dispensers. It needs replacement equipment to streamline one of its production lines for a new contract, but plans to sell the equipment at or before its expected life is reached at an estimated market value for used equipment. Select between
A remotely located air sampling station can be powered by solar cells or by running an electric line to the site and using conventional power. Solar cells will cost $12,600 to install and will have a useful life of 4 years with no salvage value. Annual costs for inspection, cleaning, etc. are
Three different plans were presented to the GAO (General Accounting Office) by a high-tech facilities manager for operating a portable cyber security facility.Plan A: Renewable 1-year contracts with payments of $1 million at the beginning of each year.Plan B: A 2-year contract that requires three
You and your partner have become very interested in cross-country motorcycle racing and wish to purchase entry-level equipment. You have identified two alternative sets of equipment and gear. Package K has a first cost of $160,000, an operating cost of $7000 per quarter, and a salvage value of
Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 10% per year and a study period of 10 years. Alternative D First cost, $ -40,000 -32,000 -3,000 AOC, $/year -7,000 Annual increase in operating cost, $/year -1,000 Salvage value, $ 9,000 500 Life,
The product development group of a high-tech electronics company developed five proposals for new products. The company wants to expand its product offerings, so it will undertake all projects that are economically attractive at the company€™s MARR of 20% per year. The cash flows (in
An engineer is trying to decide which process to use to reduce sludge volume prior to disposal. Belt filter presses (BFP) will cost $203,000 to buy and $85,000 per year to operate. Belts will be replaced one time per year at a cost of $5500. Centrifuges (Cent) will cost $396,000 to buy and $119,000
Compare two alternatives, A and B, on the basis of a present worth evaluation using i = 10% per year and a study period of 8 years. Alternative A First cost, $ -15,000 -28,000 -9,000 Annual operating cost, $/year -6,000 Overhaul in year 4, $ -2000 Salvage value, $ 3,000 4 5,000 |Life, years
Lego Group in Bellund, Denmark manufactures Lego toy construction blocks. The company is considering two methods for producing special purpose Lego parts. Method 1 will have an initial cost of $400,000, an annual operating cost of $140,000, and a life of 3 years. Method 2 will have an initial cost
NASA is considering two materials for use in a space vehicle tracking station in Australia. The estimates are shown below. Which should be selected on an economic basis of present worth values at an interest rate of 10% per year? Material First cost, $ Maintenance cost, $/year Salvage value, $
Dexcon Technologies, Inc. is evaluating two alternatives to produce its new plastic filament with tribological (i.e., low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 20% per year, which
Sales of bottled water in the United States totaled 34.0 gallons per person in 2014. Evian, a high-quality natural spring water, costs about 60¢ per bottle, while a local brand of purified municipal water may cost only 25¢ per bottle. On average, a local municipal water utility may provide
Two methods can be used to produce expansion anchors. Method A costs $80,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30,000 in year 1, increasing by $4000 each year. Method B will have a first cost of $120,000, an operating cost of
A company that makes food-friendly silicone (for use in cooking and baking pan coatings) is considering the independent projects shown, all of which can be considered to be viable for only 10 years. If the company€™s MARR is 15% per year, determine which should be selected on the basis of
Oil from a specific type of marine microalgae can be converted into biodiesel that may serve as an alternate transportable fuel for automobiles and trucks. If lined ponds are used to grow the algae, the construction cost is $13 million and the M&O cost is estimated at $2.1 million per year.
A software package created by Navarro & Associates can be used for analyzing and designing three-sided guyed towers and three- and four sided self-supporting towers. A single-user license will cost $4000 per year. A site license has a one-time cost of $15,000. A structural engineering
Leonard, a company that manufactures explosion proof motors, is considering two alternatives for expanding its international export capacity. Option 1 requires equipment purchases of $900,000 now and $560,000 two years from now, with annual M&O costs of $79,000 in years 1 through 10. Option 2
Lennon Hearth Products manufactures glass-door fireplace screens that have two types of mounting brackets for the frame. An L-shaped bracket is used for relatively small fireplace openings and a Ushaped bracket is used for all others. The company includes both types of brackets in the box with
In order to provide drinking water as part of its 50-year plan, a west coast city is considering constructing a pipeline for importing water from a nearby community that has a plentiful supply of brackish ground water. A full-sized pipeline can be constructed at a cost of $122 million now.
One of two methods must be used to produce expansion anchors. Method A costs $80,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year. Method B will have a first cost of $120,000, an operating cost of $8000 per year, and a
You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest
What is meant by the term equal service alternative?
When evaluating projects by the present worth method, how do you know which one(s) to select if the proposals are(a) Independent,(b) Mutually exclusive?
A rapidly growing city is dedicated to neighborhood integrity. However, increasing traffic and speed on a through street are of concern to residents. The city manager has proposed five independent trafficcalming options:1. Stop sign at corner A2. Stop sign at corner B3. Low-profile speed bump at
(a) What is the difference between a service alternative and revenue alternative?(b) What is another name of a service alternative?
When evaluating multiple alternatives or projects, against what must they be compared, if they are(a) Independent,(b) Mutually exclusive?
If you wish to accumulate $10,000 over a 5-year period by placing $200 a month, starting next month, into a Roth IRA retirement fund that pays 6% per year, compounded quarterly with no interperiod compounding, the NPER function to determine the number of deposits is:(a) =
A midcareer engineer hopes to have $2 million available for his use when he retires 20 years from now. He plans to deposit a uniform amount semiannually, beginning now and every 6 months thereafter through the end of year 20. If his investment account has a yearly return of 8% per year, compounded
If you deposit $P into a savings account that earns interest at a rate of i% per month for n years, the future worth in year n is represented by all of the following equations, except:(a) F = $P(F∕P, effective i/month, 12n)(b) F = $P(F∕P, effective i/quarter, 3n)(c) F = $P(F∕P, effective
You are planning to make two equal amount deposits, one now and the other 3 years from now in order to accumulate $300,000 ten years in the future. If the interest rate is 14% per year, compounded semiannually, the size of each deposit is:(a) <$46,300(b) $46,525(c) $47,835(d) >$48,200
The present worth of a deposit of $1000 now and $1000 every 6 months for 10 years at an interest rate of 10% per year, compounded semiannually is represented by which of the following equations:(a) P = 1000(P∕A,5%,21)(F∕P,5%,1)(b) P = 1000 (P∕A,5%,20)(c) P = 1000 (P∕A,5%,21)(d) P = 1000 +
An interest rate of 2% per quarter, compounded continuously, is closest to an effective semiannual rate of:(a) 2.00% per semiannual period(b) 2.02% per semiannual period(c) 4.0% per semiannual period(d) 4.08% per semiannual period
Assume you make monthly deposits of $200 starting 1 month from now into an account that pays 6% per year, compounded semiannually. If you want to know how much you will have after 4 years, the value of i you should use in the F∕A factor, assuming no interperiod interest, is:(a) 0.5%(b) 3.00%(c)
If you make quarterly deposits for 3 years (beginning one quarter from now) into an account that compounds interest at 1% per month, the value of n in the F∕A factor (for determining F at the end of the 3-year period) is:(a) 3(b) 4(c) 12(d) 16
The only time you change the original cash flow diagram in problems involving uniform series cash flows is when the:(a) Payment period is longer than the compounding period(b) Payment period is equal to the compounding period(c) Payment period is shorter than the compounding period(d) Stated
An interest rate of 18% per year, compounded continuously, is closest to an effective:(a) 1.51% per quarter(b) 4.5% per quarter(c) 4.6% per quarter(d) 9% per 6 months
An interest rate of 2% per month is the same as:(a) 24% per year, compounded monthly(b) A nominal 24% per year, compounded monthly(c) An effective 24% per year, compounded monthly(d) Both (a) and (b)
Some years ago, Penny purchased the car of her dreams for $25,000 by paying 20% down at purchase time and taking a $20,000, 5-year, 6% per year, compounded monthly loan with 60 monthly payments of $386.66 each. She is examining her loan situation and would like to have some specific information.
An engineer deposited her annual bonus of $10,000 into an account that pays interest at 8% per year, compounded semiannually. She withdrew $1000 in months 2, 11, and 23. Now, she wants to know the total value of the account at the end of 3 years. Solve by assuming(a) No interperiod compounding(b)
Solve Problem 4.44 using a spreadsheet, which analyzes the loan on a boat purchased by the Fairfold family. Display the answers for parts (a) through (d) below the spreadsheet and indicate the functions that you used to obtain the answers.
The Owner of Blue Bayou Café usually pays his appliance (refrigerators, dish washers, and freezers) maintenance contract by the year. If he projects the annual costs shown, find the equivalent A value for years 1 through 5. Cash Flow, $/Year Estimated / Per Year Year 5000 7000 10% 12%
For the cash flows shown, determine the future worth in year 5. Cash Flow, $/Year Estimated / Per Year 12% 12% 20% Year 5000 6000 1-4 9000
Find the F, P, and A values for the negative cash flows shown in the diagram. i = 14% i = 10% Year 1 2 6 -100 -100 -100 -100 -100 -160 -160 -160 4)
Brady and Sons uses accounts receivable as collateral to borrow money for operations and payroll when revenues are low. If the company borrows $300,000 now at an interest rate of 12% per year, compounded monthly, and the rate increases to 15% per year, compounded monthly after 4 months, how much
How much money can a production company that makes fluidized bed scrubbers spend now instead of spending $150,000 in year 5 if the interest rates are estimated to be 10% per year in years 1 to 3 and 12% per year in years 4 and 5?
How long will it take for a lump-sum investment to double in value at an interest rate of 1.5% per month, compounded continuously? Solve by(a) Formula(b) Spreadsheet function.
A Texas chemical company had to file for bankruptcy because of a nationwide phaseout of methyl tertiary butyl ether (MTBE). The company is in the planning phase of reorganizing and expects to invest $50 million in a new ethanol production facility. Determine the revenue necessary each month to
Because of a chronic water shortage in California, new athletic fields must use artificial turf or xeriscape landscaping. If the value of the water saved each month is $6000, how much can a private developer afford to spend now on artificial turf provided he must recover his investment in 5 years.
Corrosion problems and manufacturing defects rendered a gasoline pipeline between El Paso, TX, and Phoenix, AZ, subject to longitudinal weld seam failures. The pressure was reduced to 80% of the design value. If the reduced pressure resulted in delivery of less product valued at $100,000 per month,
What nominal rate per quarter is equivalent to an effective rate of 12.7% per year, compounded continuously?
What effective interest rate per 6 months is equal to a nominal 2% per month, compounded continuously?
What effective interest rate per year, compounded continuously, is equivalent to a nominal rate of 10% per year? Solve by formula and spreadsheet function.
Western Refining purchased a model MTVS peristaltic pump for injecting antiscalant at its nanofiltration water conditioning plant. The cost of the pump was $1200. If the chemical cost is $11 per day, determine the equivalent cost per month (pump plus chemicals) at an interest rate of 1% per month.
How much would your parents have to deposit each month into an account that grows at a rate of 12% per year, compounded semiannually, if they want to have $80,000 at the end of year 3 to cover part of your college expenses? Assume no interperiod compounding. Also, write the spreadsheet function to
Income from recycling the paper and cardboard generated in an office building has averaged $3000 per month for the past 3 years. What is the income stream’s equivalent worth now at an interest rate of 8% per year, compounded quarterly?
Beginning 1 month from now, Thaxton Mechanical Products will set aside $1500 per month for possibly replacing its corrosion-resistant diaphragm pumps whenever it becomes necessary. The replacement isn’t needed for 3 years. How much will the company have available if the hoped-for rate of return
In an effort to save money for early retirement, an environmental engineering colleague plans to deposit $1200 per month, starting 1 month from now, into a fixed rate account that pays 8% per year, compounded semiannually. How much will be in the account at the end of 25 years?
The Fairfold family decided to buy a super ski and water sports boat. They took out an $80,000, 5-year, 6% per year, compounded semiannually loan with monthly payments from First Bank and Trust (FB&T). After making only two payments, a banker friend offered to make them a better deal: a 5-year,
Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be $125,000 in year 1 and increase by 3% each year through year 5. What is the equivalent annual worth of the maintenance costs at an interest rate of 10% per year, compounded semiannually? Solve
Frontier Airlines hedged the cost of jet fuel by purchasing options that allowed the airline to buy fuel at a fixed price for 2 years. The savings in fuel costs were $140,000 in month 1, $141,400 in month 2, and amounts increasing by 1% per month through the 2-year option period. What was the
Fieldsaver Technologies, a manufacturer of precision laboratory equipment, borrowed $2 million to renovate one of its testing labs. The loan was repaid in 2 years through quarterly payments that increased by $50,000 each time. At an interest rate of 12% per year, compounded quarterly, what was the
Metalfab Pump and Filter, Inc. estimates that the cost of steel bodies for pressure valves will increase by $2 every 3 months. If the cost for the first quarter is expected to be $80, what is the present worth of the costs for a 3-year time period at an interest rate of 3% per quarter?
Assume you are considering the consolidation of all your electronic services with one company. By purchasing a digital phone from AT&T wireless, you can buy wireless e-mail and fax services for $6.99 per month. For $14.99 per month, you will get unlimited web access and personal organization
Lotus Development has a software rental plan called SmartSuite that is available on the World Wide Web. A number of programs are available at $2.99 for 48 hours. If a construction company uses the service every week for an average of 48 hours, what is the future worth of the rental costs for 1 year
For the cash flows shown, determine the equivalent uniform annual worth in years 1 through 5 at an interest rate of 18% per year, compounded monthly. 1 2 3 0 0 350,000 350,000 350,000 4 Year Cash Flow, $
Metropolitan Water Utilities purchases surface water from Elephant Butte Irrigation District at a cost of $100,000 per month in the months of February through September. Instead of paying monthly, the utility makes a single payment of $800,000 at the end of each calendar year for the water it used.
Northwest Iron and Steel is considering getting involved in electronic commerce. A modest e-commerce package is available for $30,000. The company wants to recover the cost in 2 years. Find the equivalent amount of new revenue that must be realized every 6 months at an interest rate of 3% per
Environmental recovery company RexChem Partners plans to finance a site reclamation project that will require a 4-year cleanup period. If the company borrows $4.1 million now, how much will the company have to get at the end of each year in order to earn 15% per year, compounded quarterly on its
Hemisphere, LLC is planning to outsource its 51-person information technology (IT) department to Dyonyx. Hemisphere’s president believes this move will allow access to cutting-edge technologies and skill sets that would be cost prohibitive to obtain on its own. If it is assumed that the loaded
The optical products division of Panasonic is planning a $3.5 million building expansion for manufacturing its powerful Lumix DMC digital zoom camera. If the company uses an interest rate of 16% per year, compounded quarterly for all new investments, what is the uniform amount per quarter the
Radio Frequency Identification (RFID) is a technology used by drivers with “speed passes” at toll booths and ranchers who track livestock from “farm to fork.” Thrift-Mart is implementing the technology to track products within its stores. The RFID-tagged products will result in better
Head & Shoulders shampoo insured a spokesman football player’s long hair for $1 million with Lloyd’s of London. The insurance payout would be triggered if he lost at least 60% of his hair during an on-field event. The insurance company placed the odds of a payout at 1% in year 5. Determine
In an effort to have enough money to finance his passion for top-level off-road racing, a mechanical engineering graduate decided to sell some of his “toys." At time t = 0, he sold his chopper motorcycle for $18,000. Six months later, he sold his Baja pre-runner SUV for $26,000. At the end of
Pollution control equipment for a pulverized coal cyclone furnace is estimated to cost $190,000 two years from now and an additional $120,000 four years from now. If Monongahela Power wants to set aside enough money now to cover these future costs, how much must be invested at an interest rate of
The patriot missile, developed by Lockheed Martin, is designed to detect, identify, and shoot down aircraft and other missiles. The Patriot Advanced Capability- 3 was originally promised to cost $3.9 billion, but due to extra time needed to develop computer code and scrapped tests (due to high
Because testing of nuclear bombs was halted internationally in 1992, the Department of Energy has developed a laser system that allows engineers to simulate (in a laboratory) conditions in a thermonuclear reaction. Due to soaring cost overruns, a congressional committee undertook an investigation
The TerraMax truck currently being manufactured by Oshkosh Truck Co. is a driverless truck that is intended for military use. Such a truck frees personnel to more effectively perform nondriving tasks, such as reading maps, scanning for roadside explosives, or scouting for the enemy. If such trucks
A friend tells you she has saved for 7 years and has a present sum of $10,000, which earned at the rate of 8% per year, compounded quarterly.(a) Determine the equivalent amount she had to start with 7 years ago.(b) Write the EFFECT function to find the effective rate per year.
If the VF Corporation deposits $20 million of its retained earnings in an aggressive stock ownership fund for only 1 year, what will be the difference in the total amount accumulated (i.e., F) at 18% per year, compounded monthly versus 18% per year simple interest?
Videotech specializes in online security software development. It wants to have $65 million available in 3 years to pay stock dividends. How much money must the company set aside now in an account that earns interest at a rate of 12% per year, compounded quarterly? Solve using(a) Tabulated factors,
Jennifer and Rex both receive a dividend from their 401(k) retirement plan every 6 months. The earning rates for this year have been 5% per year, compounded quarterly for Jennifer, and 4.85% per year, compounded monthly for Rex. Rex felt good about this because he knew the monthly compounding on
In order to find the future worth, F, from a present amount, P, 5 years from now at an interest rate of 12% per year, compounded quarterly, what interest rate must be used in the F∕P factor, (F∕P,i%,n), when n is(a) 5,(b) 10,(c) 20?
Eckelberger Products, Inc. makes high-speed recorders with high-speed scanning. The small company has been growing at an average rate of 75% per year for the past 4 years. The CEO asked you to convert the past growth rate into a monthly rate for its annual report. If the past growth rate was an
A credit card issued by the GECU credit union has an APR of 16% and an APY of 16.64%.(a) What is the compounding period?(b) Use the EFFECT function to find the compounding period.
The Premier Car Title Loan Company makes emergency loans of up to $500 for 1 month for a fee of 4% of the loan amount. If a person borrows $500, what is(a) The nominal interest rate per year, and(b) The effective rate per year?
A company that makes modular bevel gear drives with a tight swing ratio for optimizing fork-lift vehicles was told that the interest rate on a loan would be an effective 3.5% per quarter, compounded monthly. The owner, confused by the terminology, asked you to help. What is the(a) APR,(b) APY?(c)
Citizens Bank of Toronto advertises an APR of 12% compounded monthly for collateral loans. What is the APY? Also, write the spreadsheet function to display the APY.
Western Energy makes quarterly deposits into an account reserved for purchasing new equipment 2 years from now. The interest paid on the deposits is 12% per year, compounded monthly.(a) Identify the interest period, compounding period, and compounding frequency in the interest period.(b) Calculate
You plan to deposit $100 per week into a fund that pays interest of 6% per year, compounded quarterly. Identify the interest period, compounding period, and number of times interest is compounded per interest period.
Identify the following interest rate statements as either nominal or effective:(a) 1.3% per month;(b) 1% per week, compounded weekly;(c) Nominal 15% per year, compounded monthly;(d) Effective 1.5% per month, compounded daily;(e) 15% per year, compounded semiannually.
For an APR of 10% per year, if interest is compounded quarterly, determine the nominal rate per(a) 6 months,(b) 2 years.
For an interest rate of 9% per year, compounded every 4 months, determine the nominal interest rate per(a) 8 months,(b) 12 months, and(c) 2 years.
For an interest rate of 1% per quarter, determine the nominal interest rate per(a) Semiannual period,(b) Year,(c) 2 years.
For an interest rate of 10% per year, compounded quarterly, determine the number of times interest is compounded(a) Per quarter,(b) Per 6 months,(c) Per year,(d) Per 3 years.
Determine the number of times interest is compounded in a year for the following interest statements:(a) 1% per quarter; (b) 2% per month;(c) 8% per year, compounded every 2 months.
Identify the compounding period for the following interest statements:(a) Nominal 7% per year, compounded monthly;(b) Effective 6.8% per year, compounded monthly;(c) Effective 3.4% per quarter, compounded weekly.
What is the difference between APR and APY? Which one is used in interest factor formulas, tables, and spreadsheet functions?
Identify the compounding period for the following interest statements:(a) 1% per week;(b) 2.5 % per quarter; and(c) 8.5% per year, compounded semiannually.
In order to establish a contingency fund to replace equipment after unexpected breakdowns, a manufacturer of thin-wall plastic bottles plans to deposit $100,000 now and $150,000 two years from now into an investment account. Assuming the account grows at 15% per year, the equation that does not
Showing 3900 - 4000
of 4707
First
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
Last
Step by Step Answers
Get 50% OFF
Claim Now
