Fundamentals of Economics for Applied Engineering 2nd. Edition by S Kant Vajpayee , MD Sarder | 9780367189464 | 367189461 | Holooly

Fundamentals of Economics for Applied Engineering [EXP-43482]

119 SOLVED PROBLEMS

Question: 5.7

Considering the time value of money and assuming annual compounding with i = 10% per year, what is the payback period for the following project?

Verified Answer:

Since the $5,000 investment is made now, its time-...

Question: 15.2

A hardness testing machine is being considered for acquisition at a cost of $10,000. Its useful life and salvage value are estimated to be 5 years and $3,000. The annual saving from in-house testing using this machine is likely to be $3,000. Prepare^1 the cashflow table if annual inflation during

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To prepare the cashflow table, we follow the proce...

Question: 5.6

A hydraulic machine is being planned for acquisition at a cost of $5,000. During its useful life of 7 years, it is expected to generate a gross income of $3,400 per year.Its annual maintenance cost is projected to be $300. The cost of space to house the machine and of the utilities is $900 per year

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Note that this is Example 5.1, except that we cons...

Question: 5.1

A hydraulic machine is being planned for acquisition at a cost of $5,000. During its useful life of 7 years, it is expected to generate an annual gross income of $3,400. The cost of space to house the machine and of the utilities is $900 per year. Its maintenance cost is projected to be $300 per

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Here, the first cost (or investment) is $5,000. Th...

Question: 10.1

A machine costs $11,500. At the end of its 5-year useful life its salvage value is estimated to be $1,500. Prepare its depreciation schedule if annual depreciation is (a) 20% of the first cost, (b) 20% of the book value. The depreciation charge for the last (fifth) year must be adjusted so as not

Verified Answer:

Total^{4}

allowable depreciation fo...

Question: 7.3

A milling machine’s first cost is $25,000. Its likely benefits are $5,000 in the first year, $4,750 in the second year, and so on decreasing annually by $250. The machine’s useful life is 10 years and salvage^14 value is $1,000. Based on ROR-criterion should the machine be approved for purchase if

Verified Answer:

MARR is given, and our task is assessing the machi...

Question: 7.4

A milling machine’s first cost is $30,000. The likely benefits from the machine are $5,000 in the first year, $4,750 in the second year, and so on, decreasing annually by $250. If the machine has a useful life of 10 years and a salvage value of $1,000, what is its ROR?

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We are asked to determine the value of ROR. To do ...

Question: 4.1

A new machine with expected useful life of 5 years is being planned for acquisition next year when it will cost $6,000. This cost includes maintenance for the first 2 years of the purchase. The maintenance for the subsequent 3 years of the useful life is projected to cost $300, $500, and $750

Verified Answer:

Let us sketch a cashflow diagram to help comprehen...

Question: 12.9

A pick-and-place robot whose economic life is 1 year is being considered for replacement by its deluxe model. The operating advantages of the deluxe model have been posted in Part I of the MAPI summary form as Figure 12.14. The deluxe model costs $40,000 and qualifies for a 25% tax credit.Assume

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MAPI analysis involves a careful filling-in of the...

Question: 12.10

A private company is considering whether to retire an irrigation canal it built 50 years ago at a cost of $2 million. The original estimated life of the canal was 75 years. The construction of an interstate highway has reduced the water discharge in the canal. Revenue collection from irrigation

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The initial construction cost of $2 million being ...

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