Questions from Engineering

Q: In conducting a replacement study of assets with different lives, can

In conducting a replacement study of assets with different lives, can the annual worth values over the asset’s own life cycle be used in the comparison, if the study period is (a) unlimited, (b) limit...

Q: In conducting a B/C analysis, (a)

In conducting a B/C analysis, (a) why is it usually necessary to take a specific viewpoint in categorizing cost, benefit, disbenefit estimates; and (b) what are two specific viewpoints that you can id...

Q: Identify the following projects as primarily public or private sector.

Identify the following projects as primarily public or private sector. (a) Bridge across Ohio River (b) Coal mine expansion (c) Baja 1000 race team (d) Consulting engineering firm (e) New county court...

Q: BASF will invest $14 million this year to upgrade its ethylene

BASF will invest $14 million this year to upgrade its ethylene glycol processes. This chemical is used to produce polyester resins to manufacture products varying from construction materials to aircra...

Q: Spectra Scientific of Santa Clara, CA manufactures Q-switched solid

Spectra Scientific of Santa Clara, CA manufactures Q-switched solid state industrial lasers for LED substrate scribing and silicon wafer dicing. The company got a $60 million loan to be repaid over a...

Q: Incremental cash flow is calculated as (cash flowB− cash flowA

Incremental cash flow is calculated as (cash flowB− cash flowA), where B represents the alternative with the larger initial investment. If the two cash flows were switched wherein B represents the one...

Q: Identify the viewpoint (e.g., budget, government unit

Identify the viewpoint (e.g., budget, government unit, citizen, business owner), and categorize the following cash flows as a benefit, disbenefit, or cost: (a) $600,000 annual income to area businesse...

Q: Why is an incremental analysis necessary when conducting a rate of return

Why is an incremental analysis necessary when conducting a rate of return analysis for cost alternatives?

Q: What is the overall rate of return on a $100,

What is the overall rate of return on a $100,000 investment that returns 20% on the first $30,000 and 14% on the remaining $70,000?

Q: A small construction company has $100,000 set aside in

A small construction company has $100,000 set aside in a capital improvement fund to purchase new equipment. If $30,000 is invested at 30%, $20,000 at 25%, and the remaining $50,000 at 20% per year, w...