# Engineering Economics

Homework

Engineering Economics

1. If an amount invested five years ago doubled, what is the annual interest rate?

2. An alumnus donates \$250,000 to the Mechanical Engineering Department to award \$1000/year book scholarships to students for the next 10 years. If the department wants to award the same number of scholarships each year, what is the total number of scholarships that can be awarded? Assume an 8% interest rate, and draw the cashflow diagram.

3. If your grandparents invested \$1000 for you on the day that you were born, at an interest rate of 10%, how much money will you have on your 21st birthday?

4. Consider a prospective investment in a project having a first cost of \$300,000, operating and maintenance costs of \$35,000 per year, and an estimated salvage value of \$50,000 at the end of 30 years. Assume an interest rate of 8%. What is the present equivalent cost of the investment for the 30 year project? Draw a cashflow diagram.

5. A corporation evaluates all capital investments using 20% interest. The corporation must purchase a new tangent scanner. The following estimates pertain to the two models available:

Scanx Holo-Scan
1st cost \$ 90,000 \$170,000
Life 5 yrs 5 yrs
Salvage Value \$ 15,000 \$ 50,000
Annual Cost \$ 44,000 \$ 70,000
Annual Income \$100,000 \$160,000

Determine the present value of each model. Which would you recommend based on price? Draw the cashflow diagrams.

6. A carbon-steel reactor costs \$15,000 and has an estimated life of four years in a corrosive
environment. A stainless-steel reactor costs \$30,000 and has an estimated life of 10 years in the same corrosive environment. The salvage value of the carbon-steel reactor is \$2000, and the salvage value of the stainless steel reactor is \$6000. Using 10% interest which reactor should be purchased? Draw the cashflow diagrams.

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

## Calculate the price of your order

Total price:
\$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

## Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.