Questions from Engineering

Q: The president of ChemTech is trying to decide whether to start a

The president of ChemTech is trying to decide whether to start a new product line or purchase a small company. It is not financially possible to do both. To make the product for a 3-year period will r...

Q: A division of Midland Oil & Gas has a TI of $

A division of Midland Oil & Gas has a TI of $8.95 million for a tax year. If the state tax rate averages 5% for all states in which the corporation operates, find the equivalent after-tax ROR required...

Q: When JJ and Sons was awarded a contract to pour a skyscraper’s

When JJ and Sons was awarded a contract to pour a skyscraper’s foundation, the father had to choose between two pieces of equipment needed to supplement pumping of concrete into foun...

Q: A European candy manufacturing plant manager must select a new irradiation system

A European candy manufacturing plant manager must select a new irradiation system to ensure the safety of specific ingredients, while being economical. The two alternatives available have the followin...

Q: Process control equipment purchased for $78,000 by Debco,

Process control equipment purchased for $78,000 by Debco, Incorporated generated a CFBT of $26,080 during the first year of its 10-year estimated life. This would represent a return of 31.2% per year...

Q: Perform a PW-based evaluation of the two alternatives below using

Perform a PW-based evaluation of the two alternatives below using (a) by hand, and (b) by spreadsheet solutions. The after-tax MARR is 8% per year, MACRS depreciation applies, and Te = 40%. The (GI &a...

Q: An online patient diagnostics system for surgeons has the following point estimates

An online patient diagnostics system for surgeons has the following point estimates: A first cost of $200,000 to install and $5000 annually to maintain over its expected life of 5 years. Added revenue...

Q: Elias wants to perform an after-tax evaluation of equivalent methods

Elias wants to perform an after-tax evaluation of equivalent methods to electrostatically remove airborne particulate matter from clean rooms used to package liquid pharmaceutical products. Two altern...

Q: AAA Pest Control uses the following: before-tax MARR =

AAA Pest Control uses the following: before-tax MARR = 14% per year, after-tax MARR = 7% per year, and Te = 50%. Two new spray machine options have the following estimates and will generate the same G...

Q: In an after-tax replacement study between a defender and a

In an after-tax replacement study between a defender and a challenger, there may be a capital gain (CG) or loss (CL) when the defender is sold. (a) How is the gain or loss calculated, and (b) how does...