Questions from Engineering


Q: The two machines shown are being considered for a chip manufacturing operation

The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 12% per year and that the inflation rate is 7% per year. Which machine should be sel...

See Answer

Q: As an innovative way to pay for various software packages that your

As an innovative way to pay for various software packages that your company sells, a high-tech service company has offered to pay your company in any one of three ways: (1) pay $450,000 now; (2) pay $...

See Answer

Q: An engineer planning for her son’s college education made deposits into a

An engineer planning for her son’s college education made deposits into a separate high-risk brokerage account every time she earned extra money from side consulting jobs. The deposits and their timin...

See Answer

Q: An engineer deposits $10,000 into an account when the

An engineer deposits $10,000 into an account when the market interest rate is 10% per year and the inflation rate is 5% per year. If the account is left undisturbed for 5 years, (a) How much money wil...

See Answer

Q: A company has been invited to invest $1 million in a

A company has been invited to invest $1 million in a partnership and receive a guaranteed total of $2.5 million after 4 years. By corporate policy, the MARR is always established at 4% above the real...

See Answer

Q: Two people developed first-cut cost estimates to construct a new

Two people developed first-cut cost estimates to construct a new 130,000 square foot building on a university campus. Person A applied a general purpose per unit cost estimate of $180 per square foot...

See Answer

Q: In 2009, the Office of the Under Secretary of Defense projected

In 2009, the Office of the Under Secretary of Defense projected that a critical International Defense Construction Cost Index would increase from its value then of 3423 to 4098 in 2016. If the actual...

See Answer

Q: If the PCI editor at Chemical Engineering (CE) decides to

If the PCI editor at Chemical Engineering (CE) decides to update the Plant Cost Index so that the year 2010 has a base value of 100 instead of the current value of 550.8, determine the PCI values for...

See Answer

Q: In 2015, Mariam, an engineer with Total Petroleum, decided

In 2015, Mariam, an engineer with Total Petroleum, decided to invest in stocks of a corporation that concentrates on crude oil production and refined products, though the price of oil is a very volati...

See Answer

Q: The cost of a high-quality 250-horsepower compressor was

The cost of a high-quality 250-horsepower compressor was $14,000 when recently purchased. What would a 600-horsepower compressor be expected to cost?

See Answer