Questions from Engineering

Q: From the PW, AW, and FW values shown, the

From the PW, AW, and FW values shown, the conventional B/C ratio is closest to: (a) 1.27 (b) 1.33 (c) 1.54 (d) 2.76

Q: If two mutually exclusive alternatives have B/C ratios of 1

If two mutually exclusive alternatives have B/C ratios of 1.5 and 1.4 for the lower first-cost and higher first-cost alternatives, respectively: (a) The B/C ratio on the increment between them is grea...

Q: All of the following cash flows should be classified as disbenefits,

All of the following cash flows should be classified as disbenefits, except: (a) Cost of fish from hatchery to stock lake at state park (b) Decrease in property values due to closure of a government r...

Q: If benefits are $10,000 per year forever starting in

If benefits are $10,000 per year forever starting in year 1, and costs are $50,000 at time zero and $50,000 at the end of year 2, the B/C ratio at i = 10% per year is closest to: (a) 0.93 (b) 1.10 (c)...

Q: All of the following are examples of debt capital, except:

All of the following are examples of debt capital, except: (a) Mortgage on equipment (b) Long-term bonds (c) Short-term loan from a bank (d) Preferred stock

Q: For a 60–40 D-E mix of investment capital

For a 60–40 D-E mix of investment capital, the maximum cost for debt capital that would yield a WACC of 10% when the cost of equity capital is 4% is closest to: (a) 8% (b) 12% (c) 14% (d)...

Q: Reliant Electric Company has erected a large portable building with a first

Reliant Electric Company has erected a large portable building with a first cost of $255,000 and an anticipated salvage of $50,000 after 25 years. (a) Should the switch from DDB to SL depreciation be...

Q: The independent project estimates below have been developed by the engineering and

The independent project estimates below have been developed by the engineering and finance managers at Golphanen Enterprises. The corporate MARR is 8% per year, and the capital investment limit set by...

Q: A process for producing the mosquito repellant Deet has an initial investment

A process for producing the mosquito repellant Deet has an initial investment of $200,000 with annual costs of $50,000. Income is expected to be $90,000 per year. (a) What is the payback period at i =...

Q: Two machines can be used to produce a part from titanium.

Two machines can be used to produce a part from titanium. The costs and other cash flows associated with each alternative are estimated. The salvage values are constant regardless of when the machines...