Questions from Engineering

Q: There are five independent projects that must be evaluated on the basis

There are five independent projects that must be evaluated on the basis of the profitability index. (a) Given an investment limit of $35 million and a MARR of 10% per year, select from the projects. (...

Q: A salesman from Industrial Water Services (IWS), who is trying

A salesman from Industrial Water Services (IWS), who is trying to get his foot in the door of Westco Refining, offered electro-dialysis equipment for $2.5 million. This is $800,000 more than the price...

Q: The cost of constructing a roundabout (R/A) in

The cost of constructing a roundabout (R/A) in a low-traffic residential neighborhood 5 years ago was $625,000. A civil engineer designing another R/A that is almost the same design estimates the cost...

Q: How many future dollars 10 years from now will have the same

How many future dollars 10 years from now will have the same buying power as $10,000 today? The market interest rate is 12% per year and the inflation rate is 7% per year.

Q: Factors that increase costs and prices—especially for materials and manufacturing

Factors that increase costs and prices—especially for materials and manufacturing costs sensitive to market, technology, and labor availability—can be considered separately using the real interest rat...

Q: Determine today’s purchasing power of $1,000,000 thirty

Determine today’s purchasing power of $1,000,000 thirty years in the future, if if = 15% per year and f = 5% per year.

Q: In an effort to reduce pipe breakage, water hammer, and

In an effort to reduce pipe breakage, water hammer, and product agitation, a French chemical company plans to install several chemically resistant pulsation dampeners. The cost of the dampeners today...

Q: The lease cost for a specialized highway design software package is estimated

The lease cost for a specialized highway design software package is estimated to be $13,000 for each of years 1, 2, and 3 (future dollars). (a) Calculate the CV amount today (year 0) of each future co...

Q: For many years, college cost (including tuition, fees,

For many years, college cost (including tuition, fees, room, and board) increases have been higher than the inflation rate, averaging 5% to 8% per year. According to the College Board’s Trends in Coll...

Q: The federal-level Pell Grant program provides financial aid to needy

The federal-level Pell Grant program provides financial aid to needy college students. The grant increases annually to account for inflation. The maximum total Pell Grant award increased from $5550 to...