Questions from Engineering

Q: A $10,000 mortgage bond that is due in 20

A $10,000 mortgage bond that is due in 20 years pays interest of $250 every 6 months. The bond coupon rate is: (a) 2.5% per year, payable quarterly (b) 5.0% per year, payable quarterly (c) 5% per year...

Q: For the net cash flow and cumulative cash flows shown, the

For the net cash flow and cumulative cash flows shown, the value of x is nearest: (a) $−8,000 (b) $−16,000 (c) $16,000 (d) $41,000

Q: Basset, a furniture manufacturing company, borrowed $1 million and

Basset, a furniture 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. T...

Q: In a separate conversation, the line manager told you to not

In a separate conversation, the line manager told you to not plan for a rebuild after 6000 hours because the pump will be replaced after a total of 10,000 hours of operation. The line manager wants to...

Q: An investment of $60,000 ten years ago resulted in

An investment of $60,000 ten years ago resulted in uniform income of $10,000 per year for the 10-yearperiod. The rate of return on the investment was closest to: (a) 10.6% per year (b) 14.2% per year...

Q: A bulk materials hauler purchased a used dump truck for $50

A bulk materials hauler purchased a used dump truck for $50,000 two years ago. The operating costs have been $5000 per month and revenues have averaged $7500 per month. The truck was just sold for $11...

Q: Five years ago, an alumnus of a university donated $50

Five years ago, an alumnus of a university donated $50,000 to establish a permanent endowment for scholarships. The first scholarships were awarded 1 year after the contribution. If the amount awarded...

Q: When applying the MIRR approach to determine the external rate of return

When applying the MIRR approach to determine the external rate of return of a project, which of the following statements is true? (a) The borrowing rate, ib, is usually equal to the MARR. (b) The borr...

Q: For the nonconventional net cash flow series shown, the external rate

For the nonconventional net cash flow series shown, the external rate of return per year using the MIRR method, with an investment rate of 20% per year and a borrowing rate of 8% per year, is closest...

Q: Alternative A has a rate of return of 14% and alternative

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 inve...