Questions from Engineering

Q: Searching for ways to cut costs and increase profit, one of

Searching for ways to cut costs and increase profit, one of the industrial engineers at Home Comfort Furniture Manufacturers, Inc. determined that the equivalent annual worth of an existing machine ov...

Q: The rate of return at the end of year 8 for two

The rate of return at the end of year 8 for two situations: (a) the business is sold for the net cash amount of $100,000 and (b) no sale.

Q: When determining the economic service life of a new piece of equipment

When determining the economic service life of a new piece of equipment, an engineer made the calculations below; however, the annual worth of the salvage value for 2 years of retention was omitted. Co...

Q: In the process of performing a replacement study, an engineer at

In the process of performing a replacement study, an engineer at a fiber optics manufacturing company has two options to reduce costs on a production line. The currently owned Robot X can be sold now...

Q: A machine purchased 3 years ago for $140,000 is

A machine purchased 3 years ago for $140,000 is now too slow to satisfy the demand of customers. It can be upgraded now for $79,000 or sold to a smaller company internationally for $40,000. The upgrad...

Q: In order to replace an old process for producing a polymer that

In order to replace an old process for producing a polymer that reduces friction loss in engines, two current-technology machines have been identified. Process K will have a first cost of $160,000, an...

Q: In Example 11.8, the in-place kiln and

In Example 11.8, the in-place kiln and replacement kiln (GH) were evaluated using a fixed study period of 6 years. This is a significantly shortened period compared to the expected 12-year life of the...

Q: A company that makes micro motion compact coriolis meters purchased a new

A company that makes micro motion compact coriolis meters purchased a new packaging system for $600,000. The estimated salvage value was $28,000 after 10 years. Currently the expected remaining life i...

Q: With the estimates shown below, Sarah needs to determine the trade

With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X that will render its AW equal to that of machine Y at an interest rate of 8% per year. Determine...

Q: Machine A was purchased 5 years ago for $90,000

Machine A was purchased 5 years ago for $90,000. Its operating cost is higher than expected, so it will be used for only 4 more years. Its operating cost this year will be $40,000, increasing by $2000...