Questions from Engineering

Q: A top-of-the-line 3D printer costs $

A top-of-the-line 3D printer costs $40,000 today. The manufacturer plans to raise the price so that a real rate of return of 5% per year is realized. In a period of 4% per year inflation, how much wil...

Q: Mid-Valley Industrial Extension Service, a state-sponsored agency

Mid-Valley Industrial Extension Service, a state-sponsored agency, provides water quality sampling services to all business and industrial firms in a 10-county region. Last month, the service purchase...

Q: A UK-based life insurance company will pay a cash-

A UK-based life insurance company will pay a cash-value sum of £500,000 when the insured reaches the age of 65. The insured will be 65 years old 27 years from today. (a) Determine the cash value of th...

Q: Aquatech Microsystems spent $183,000 for a communications protocol to

Aquatech Microsystems spent $183,000 for a communications protocol to achieve interoperability among its utility systems. The company uses a real interest rate of 15% per year on such investments and...

Q: A DSL company has made an equipment investment of $40 million

A DSL company has made an equipment investment of $40 million with the expectation that it will be recovered in 10 years. The company has a MARR based on a real rate of return of 12% per year. If infl...

Q: A European-based cattle genetics engineering research lab is planning for

A European-based cattle genetics engineering research lab is planning for a major expenditure on research equipment. The lab needs $5 million of today’s dollars so that it can make the acquisition 4 y...

Q: In wisely planning for your retirement, you invest $12,

In wisely planning for your retirement, you invest $12,000 per year for 20 years into a 401-k investment account. (a) How much can you withdraw each year for 10 years, starting 1 year after your last...

Q: Verify the 5-year recovery period rates for MACRS given in

Verify the 5-year recovery period rates for MACRS given in Table 16–2. Start with the DDB method in year 1, and switch to SL depreciation when it offers a larger recovery rate. Solve by hand and sprea...

Q: The Ecology Group wishes to purchase a piece of equipment for recycling

The Ecology Group wishes to purchase a piece of equipment for recycling of various metals. Machine 1 costs $123,000, has a life of 10 years, an annual cost of $5000, and requires one operator at a cos...

Q: For a present sum of $750,000, what is

For a present sum of $750,000, what is the annual worth (in then-current dollars) in years 1 through 5 if the market interest rate is 10% per year and the inflation rate is 5% per year?