Questions from Engineering


Q: Halifax Technologies primarily relies on 100% equity financing to fund projects

Halifax Technologies primarily relies on 100% equity financing to fund projects. A good opportunity is available that will require $250,000 in capital. The Halifax owner can supply the money from pers...

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Q: Mrs. McKay’s Nutrition Products has different methods by which a $

Mrs. McKay’s Nutrition Products has different methods by which a $600,000 project can be funded using debt and equity capital. A net cash flow of $90,000 per year is estimated for 7...

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Q: A new annular die process is to be installed for extruding pipes

A new annular die process is to be installed for extruding pipes, tubes, and tubular films. The phase I installed price for the dies and machinery is $2,000,000. The manufacturer has not decided how t...

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Q: Deavyanne Johnston, the engineering manager at TZO Chemicals, is conducting

Deavyanne Johnston, the engineering manager at TZO Chemicals, is conducting an evaluation of alternatives based on ROR. She was given the following data and told that due to the unusually large number...

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Q: Two friends each invested $20,000 of their own (

Two friends each invested $20,000 of their own (equity) funds. Stan, being more conservative, purchased utility and manufacturing corporation stocks. Theresa, being a risk taker, leveraged the $20,000...

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Q: Different types and capacities of crawler hoes are being considered for use

Different types and capacities of crawler hoes are being considered for use in a significant excavation project to bury fiber-optic cable in Argentina. Several supervisors who have experience with sim...

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Q: John, who works for Dumas Jewelers, has decided to use

John, who works for Dumas Jewelers, has decided to use the weighted attribute method to compare three systems of cutting diamonds for setting into rings, earrings, necklaces, and bracelets. Once the f...

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Q: An airport Baggage Handing Department has evaluated two proposals for baggage delivery

An airport Baggage Handing Department has evaluated two proposals for baggage delivery conveyor systems. A present worth analysis at i = 15% per year of estimated revenues and costs resulted in PWA =...

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Q: A piece of onboard equipment has a first cost of $600

A piece of onboard equipment has a first cost of $600,000, an annual cost of $92,000, and a salvage value that decreases to zero by $150,000 each year of the equipment’s maximum useful life of 5 years...

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Q: An injection molding system has a first cost of $180,

An injection molding system has a first cost of $180,000, and an annual operating cost of $84,000 in years 1 and 2, increasing by $5000 per year thereafter. The salvage value of the system is 25% of t...

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