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engineering
introduction mechanical engineering

Questions and Answers of Introduction Mechanical Engineering

Which of the three components of Figure 1.2 might be a source of concern regarding "ethics"? Products Management Decisions Information Customer Transactions Data Analyze Measure, the + Categorize
What are the major forms of a business? Why would there need to be any difference between them? What are some advantages and disadvantages to each form?
How would a company know that its product or service was preferred in the marketplace? What could a competitor do to erode this favorable position?
This chapter placed emphasis on a "transaction-based perspective" related to customers. What would be different about a transaction involving an investor? What do we mean by transaction?
How might the market value of a firm differ from its intrinsic value?
With Figure 1.5 in mind, how could changes in government policies affect accounting activities? All Stakeholders Financial statements Bank & agency reports Accounting System Tax returns Management &
It is claimed that problem definition and decision-making are intertwined. Explain.
Managers must be problem-solvers but are not always decision-makers. Do you agree? Disagree? Provide an example that clarifies your position.
Engineers are often accused of having a narrow view of problems, and are claimed to lack skills to deal with ambiguity. In what ways might an engineering manager differ in this regard?
Why are most engineers likely to have experience with deterministic risk and not probabilistic risk?
Clarify the difference between risk and regret.
It was stated that the topic of tax accounting would not receive extensive treatment in this textbook. In what way could this be justified? What might be the impact on what can be learned from the
Why is the concept of an ongoing concern important to the interpretation of financial statements?
It is mentioned that for a "decision to be made" there must be more than one alternative under consideration and the possible outcomes must be of unequal value. What are the three general types of
In the decision-making process, what are the ways in which context can impact outcomes?
Intuition in decision-making can expedite decision-making (versus cognitive domains that are slow and deliberate), but it can fail or mislead us, too. How can that be?
We live in a global economy, and many different external activities have an impact on the business. On what basis would we narrow the scope of this book to de-emphasize tax law, currency exchange,
You are in a meeting to decide on a new product development investment. The VP in charge of the meeting seems to be asking a lot of questions of the design engineers. And it also seems like the VP
1. Describe "intangible" assets.2. Is it possible for working capital to be negative? Retained earnings? Why?3. The liquidity of assets is important to creditors. Does the liquidity of assets affect
It seems that there are many ways for fraud and abuse to take place in the field of accounting. How can this occur when there are so many regulatory bodies and professional accounting standards in
In several accounting situations it seems like there is more than one acceptable way to account for a transaction. Is this a significant issue? Are there situations where it can lead to ethical
Assume you work for an accounting firm and you are part of a team that does work for two clients that are competitors. Describe some ways in which ethical considerations might be an important part of
Managers seem to be concerned about EBITDA quite a bit. What is it that EBITDA really communicates to managers?
Adjusting entries are often required in accounting. Please describe the various types of adjusting entries and give at least three examples.
Sometimes financial statements will show "unearned revenue." How does this arise? What type of transactions might be typical examples?
Two key performance indicators for a company are profitability and solvency. Why are these so important? Is the value of accrual accounting more evident when centered on profitability or solvency?
What does it mean to recommend that an expense or revenue should be "accrued?" Would this be considered "normal?"
What is the implication of the statement "the books are not in balance"? What corrective action should be taken?
Items in the table below need to be categorized (if relevant) as part of an income statement. Indicate whether each of the accounts falls under the category of operating expense, cost of goods sold,
Data extracted from a year-end balance sheet are shown below. Compute the working capital for this firm. What would the current ratio be, and what is the significance for this firm? Accounts payable
Describe how trend analysis can provide insight on whether a firm's financial position is improving or deteriorating.
Would the combination of a high current ratio and a low inventory turnover ratio suggest a firm is maintaining too high an inventory level? Why or why not?
A senior VP has proposed that "we pay too much tax, so we should issue new debt and use the proceeds to buy back common stock." What would be the logic behind this statement?
Jameson Polymers, Inc. has common stock that is currently selling at $\$ 100$ per share. If Jameson has 100 shares of common stock outstanding, what is its return on total assets (ROA)? Supplementary
Blair Company has $\$ 5$ million in total assets. The company's assets are financed with $\$ 1$ million of debt and $\$ 4$ million of common equity. The company's income statement is summarized
A healthcare home-care firm has a profit margin of 15 percent on visiting nurse sales of $\$ 20,000,000$. If the firm has debt of $\$ 7,500,000$, total assets of $\$ 22,500,000$, and an after-tax
Independent Nursing Consultants (INC) has the following data:If INC could streamline operations, cut operating costs, and raise net income to $\$ 300$, without affecting sales or the balance sheet
Dogway Candy Company sells candy on consignment to "big-box" stores and currently has $\$ 1,000,000$ in accounts receivable. Its days sales outstanding (DSO) is 50 days (based on a 365-day year). The
Custom Baseball Hats sells all its merchandise on credit. It has a profit margin of 4 percent, days sales outstanding equal to 60 days (based on a 365-day year), receivables of $\$ 147,945.20$, total
ABC, Inc. had the following partial balance sheet and partial annual income statement:The industry average DSO is 30 (based on a 365-day year). ABC plans to change its credit policy so as to cause
Raster Imaging Company has a new management team that has developed an operating plan to improve upon last year's ROE. The new plan would place the debt ratio at 55 percent, which will result in
Circuit Board Systems (CBS) has the following data: Assets: $\$ 100,000$; Profit margin: $6.0 \%$; Tax rate: $4.0 \%$; Debt ratio: $40.0 \%$; Interest rate: 8.0\%: Total assets turnover: 3.0. What is
For the balance sheet for Bethesda Imaging, shown in Table 2.6, identify three financial ratios that might be of interest to an investor in the company. What do the 5 -year trends for the ratios
An advanced engineering computer was purchased for $\$ 22,750$ and its expected life is 4 years. It is estimated the company could sell the computer for $\$ 500$ after 5 years. Compute and compare
Chase Publishing Company purchased the copyright to a financial textbook for $\$ 25,000$. Although the author thought the book would serve academia for 10 years, the reality is that the typical life
Chase Publishing was disappointed with the financial textbook and decided to purchase the trademark from a well-known record store for $\$ 250,000$. How can the cost of the trademark be accounted for
You just received an unexpected bonus at work of \($10,000.\) While you plan on using a bit of it to celebrate by purchasing all the accounting books you ever dreamed of, how much should you deposit
Your colleague is excited about your good fortune (Problem 3.1) at work, but she only got the promise of a watch or \($300\) cash. You convince her that she will be better in the long run by just
What is the future equivalent of \($1,000\) invested at 8% simple interest for 3 years?
What lump-sum amount of interest will be paid on a \($10,000\) loan that was made on 1 June 2011 and repaid on 1 September 2015, with ordinary simple interest at 10% per year?
You borrow \($495\) from your brother-in-law to buy an iPad and agree to pay it back when you get your tax refund (6 months away). Because you are family, but not trusted, you are being charged
You invest \($17,000\) in a mutual fund recommended by a fellow Dallas Mavericks sports fan. The fund is known to have \highs and lows," but your friend virtually guarantees you will beat the market
Aaron loans Victoria \($10,000\) with interest compounded at a rate of 8% annually. How much will Victoria owe Aaron if she repays the entire loan at the end of five years?
Approximately how long does it take to quadruple an investment of \($1,000\) when the interest rate is 15% per year?
Suppose you make 15 equal annual deposits of \($1,000\) each into a bank account paying 5% interest per year. The first deposit will be made one year from today. How much money can be withdrawn from
Jim makes a deposit of $\$ 12,000$ in a bank account. The deposit is to earn interest annually at the rate of $9 \%$ percent for seven years.(a) How much will Jim have on deposit at the end of seven
John is considering the purchase of a lot. He can buy the lot today and expects the price to rise to $\$ 15,000$ at the end of 10 years. He believes that he should earn an investment yield of $10 \%$
An investor can make an investment in a real estate development and receive an expected cash return of $\$ 45,000$ after six years. Based on a careful study of other investment alternatives, she
A loan of $\$ 50,000$ is due 10 years from today. The borrower wants to make annual payments at the end of each year into a sinking fund that will earn interest at an annual rate of 10 percent. What
The Dallas Development Corporation is considering the purchase of an apartment project for $\$ 100,000$. They estimate that they will receive $\$ 15,000$ at the end of each year for the next 10
Consider an investment that will pay $\$ 680$ per month for the next 15 years and will be worth $\$ 28,000$ at the end of that time. How much is this investment worth to you today at a $5.25 \%$
You currently owe $\$ 18,000$ on a car loan at $9.5 \%$ interest. If you make monthly payments of $\$ 576.59$ per month, how long will it take you to fully repay the loan?
You have just borrowed $\$ 10,000$ and will be required to make monthly payments of $\$ 227.53$ for the next five years in order to fully repay the loan. What is the implicit interest rate on this
Your uncle has given you a bond that will pay $\$ 500$ at the end of each year forever into the future. If the market yield on this bond is $8.25 \%$, how much is it worth today?
What monthly payment would a college senior make to pay off a used car loan of $\$ 2,000$ at $12 \%$ by the end of the year?
You are considering financing a new car which cost $\$ 51,300$ with an amortized loan. The nominal rate is $2.9 \%$ per annum, the term of the loan is 6 years, and you will make monthly payments. How
You want to retire in 30 years. You are starting to invest in a growth income fund that promises an ambitious rate of $15 \%$. You can put in $\$ 200$ per month. How much will you have in 30 years?
Suppose that you make an investment that will cost $\$ 1,000$ and will pay you interest of $\$ 100$ per year for the next 20 years. Then at the end of the 20 years, the investment will pay $\$
A biologist decided that she wanted to have $\$ 54,267.89$ in her account in 10 years, and she found a bank which compounded monthly at $6 \%$. What are her monthly payments to achieve her goal of
How many years will it take for your savings account to accumulate $\$ 1,000,000$ if it pays $4 \%$ interest per annum compounded semiannually and you deposit $\$ 10,000$ every 6 -months at the end
A project has a first cost of $\$ 16,999$ with a life of 10 years and a salvage value of $\$ 2,500$. If the MARR is $12 \%$ and provides benefits of about $\$ 2,750$ annually, what is the
You are faced with making a decision on a large capital investment proposal. The capital investment amount is $\$ 640,000$. Estimated annual revenue at the end of each year in the eight-year study
Evaluate machine XYZ on the basis of the PW method when the MARR is $12 \%$ per year. Pertinent cost data are as follows: Investment cost Useful life Market value Annual operating cost Overhaul cost
A testing laboratory requires a new DRIE machine with a cost of $\$ 499,000$, and in this high-tech industry the machine will have a salvage value of $\$ 40,000$ at the end of 10 years of service.
A material processing oven has a first cost of $\$ 16,999$ with a life of 10 years and a salvage value of $\$ 2,500$. The corporate MARR is $12 \%$. If the system provides about $\$ 2,750$ annually,
A used conveyor dealer presents an investment package that requires you to pay $\$ 189.99$ a month with $\$ 1,499.00$ down and a nominal annual interest rate of $17 \%$. What is the actual cost of
A capital investment project involves the purchase of a 3-D soldering station for $\$ 15,000$, producing an annual net benefit of $\$ 2,250$. The system has an 8-year useful life with a salvage value
A tattoo shop has the following revenue stream over a 5 -year period: $\$ 9,000, \$ 17,000, \$ 19,000, \$ 11,000$, and $\$ 22,000$. What is the EUAW of this business (assume $\mathrm{i}=12 \%$ ).
A dicing system has a first cost of $\$ 68,000$ with a life of 8 years and a salvage value of probably not more than $\$ 9,000$. The corporate MARR is $14 \%$. If the system has a maintenance cost of
An observatory has a telescope that requires an initial investment of $\$ 25,000$. A benefactor will provide a $\$ 7,500$ gift every 5 years as long as the university makes the telescope available to
What is the maximum price an investor will pay for a bond with a face value of $\$ 5,000$ and a coupon rate of $12 \%$, paid annually? Assume the investor seeks a yield of $10 \%$ and the bond will
An investor purchased $\$ 20,000$ of U.S. Treasury bonds at face value. These bonds have a 25 -year maturity period, and they pay $1.25 \%$ interest every three months. Unfortunately, interest rates
The current market interest rate on U-Store City Investment Building bonds is $10 \%$, compounded semiannually. The original bonds are sold as $\$ 1,000,12 \%$ interest rate notes. A batch of bonds
Ajax Savings Bank has certificate of deposit notes with a face value of $\$ 10,000$ with a $10 \%$ interest rate compounded daily. What is the current market price of the $\mathrm{CD}$ if the term of
A US Treasury bond has a maturity of 10 years and a face value of $\$ 10,000$ with a $5 \%$ coupon rate. Trading of the bonds has been pretty active, and the current quoted price is $\$ 96,500$. What
A new high-definition television costing $\$ 2,999$ is on a rent-to-own plan and is to be paid in 18 end-of-month payments (starting one month from now). The monthly payments are determined as
It is said that "the higher the MARR, the higher the price that a company should be willing to pay for equipment that reduces annual operating expenses." Explain the reasoning behind this statement.
A homeowner found a preferred savings account book in the wall of a home he was remodelling. He went to the bank and discovered that the account was 25 years old and had $\$ 425,801$ in the bank! The
What is the rate of return for a $\$ 14,000,20$-year investment that provides a payout of $\$ 1,000$ a year?
A neurosurgery resident wants to double her money in the time it takes her to complete a residency program (7 years) so she can buy a new car with cash upon graduation. What interest rate is needed
What is the payback period for the project described below? Machine investment MARR Annual benefit $24,999 10% $6,500 Annual maintenance $2,000 Life 10 years Salvage value $2,000
What is the payback period for the project described in Problem 4.21 if the maintenance increases by $\$ 500 /$ year (after the first year)?Data from in problem 4.21What is the payback period for the
What is the payback period for the project described below? Machine investment $24,999 MARR 18% Annual benefit $5,000 Annual maintenance Life Salvage value $2,500 7 years $1,000
The important property of a material in all metal forming process is:(a) Elasticity (b) Plasticity(c) Ductility (d) Brittleness
Which of the following material cannot be forged:(a) Wrought iron (b) Cast iron(c) Mild steel (d) High carbon steel
Mechanical properties of the metal improve in hot working due to:(a) Recovery of grains(b) Recrystallization(c) Grain growth(d) Refinement of grain size
The increase in hardness due to cold working is called:(a) Cold hardening (b) Hot hardening(c) Strain hardening (d) Age hardening
The extruded product moves in the backward direction opposite to that of the deforming force in:(a) Forward extrusion(b) Die extrusion(c) Backward extrusion(d) Wire drawing
Hot working operations are carried at:(a) Recrystallization temperature(b) Below crystallization temperature(c) Above crystallization temperature(d) Above room temperature
Seamless tubes are made by:(a) Piercing (b) Extrusion(c) Rolling (d) Plug rolling

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