Questions from Engineering

Q: If a 3D printer increased in cost at exactly the inflation rate

If a 3D printer increased in cost at exactly the inflation rate, what was the inflation rate if the printer costs exactly twice as much now as it did 10 years ago?

Q: α-β, Inc., a high-tech company in

α-β, Inc., a high-tech company in San Diego, whose stock trades on the NYSE exchange, uses a MARR of 25% per year. If the chief financial officer (CFO) said the company expects to make a real rate of...

Q: Cellgene Biometrics, a small biotech company, uses a MARR of

Cellgene Biometrics, a small biotech company, uses a MARR of 40% per year when evaluating new investments. If the inflation rate is 9% per year, what will the real rate of return be, provided it reali...

Q: The new CEO of a high-tech incubator company wants to

The new CEO of a high-tech incubator company wants to entice venture capitalists by promising a growth rate of 40% per year for at least 3 years. Therefore, the company’s MARR was set at 40%. If this...

Q: Calculate the inflation-adjusted interest rate when the annualized inflation rate

Calculate the inflation-adjusted interest rate when the annualized inflation rate is 7% per year and the real interest rate is 4% per year.

Q: Because retail supermarket corporations operate on a low ROR, it is

Because retail supermarket corporations operate on a low ROR, it is common to use a market MARR of about 3% per year. What real return rate is implied from a market interest rate of 3% per year when t...

Q: In an inflationary period, what is the difference between (

In an inflationary period, what is the difference between (a) inflated dollars and “then-current” future dollars, and (b) “then-current” future dollars and constant-value future dollars?

Q: Compare the alternatives below on the basis of their capitalized costs with

Compare the alternatives below on the basis of their capitalized costs with adjustments made for inflation. Use i =12% per year and f = 3% per year.

Q: A grandfather is planning to leave his only granddaughter well off when

A grandfather is planning to leave his only granddaughter well off when she reaches the age of 25. He plans to deposit a lump sum now, which is her second birthday, such that she will have enough mone...

Q: A doctor is on contract to a medium-sized oil company

A doctor is on contract to a medium-sized oil company to provide medical services at remotely located, widely separated refineries. The doctor is considering the purchase of a private plane to reduce...