An engineer planning for his child’s college education purchased a zero-coupon corporate bond (i.e., a bond that has no dividend payments) for $9250. The bond has a face value of $50,000 and is due in 18 years. If the bond is held to maturity, determine the i* for the investment.

Q: A company that manufactures high-speed submersible rotary-indexing spindles is considering an…

A: (a) The time period is indicated by ‘n’. The rate of return is indicated by ‘i’. The future worth…

Q: t and interest rate of 10% per year, the perpetual equivalent annual equivalent cost of $70000 now,…

A: Annual cost = $70000 At the end of six year the cost = $100000 From ten year the cost = $10000…

Q: A manufacturer of electronic devices invests $650,000 in equipment for making compact piezoelectric…

A: Given Information: Cost of Equipment = $650,000 Revenue per year = $225,000 Time Period = 10 years…

Q: SWHP has purchased a robotized prescription fulfillment system for faster and more accurate delivery…

A: Given, Initial investment = $3 Million semi-annual operating cost = 200000/2 = $100000

Q: When positive net cash flows are generated before the end of a project, and when these cash flows…

A: Cash inflows can be reinvested to generate a rate of return higher than the internal rate of return.

Q: A West Virginia coal mining operation has installed an in-shaft monitoring system for oxygen tank…

A: Given: The maintenance cost is = $150,000 in year 3 In year 4 = $175,000 And increases by = $25,000…

Q: A small construction company has $190,000 set aside in a capital improvement fund to purchase new…

A: The actual rate of return can be calculated as follows: Actual rate of…

Q: One way to recover invested capital with interest is to collect the principal P over n years as P∕n…

A: (a)   Borrowing amount (B) is $6,000. Interest rate (i) is 10%. Time period (n) is 3 years. Capital…

Q: The annual worth for years 1 through infinity of $50,000 now, $10,000 per year in years 1  through…

A: Annual worth: The yearly worth is the net of the relative multitude of advantages and costs caused…

Q: A large water utility is planning to upgrade its SCADA system for controlling well pumps, booster…

A: First we find PW of savings. PW ($) = 14,000 + [14,000 x P/A(8%, 3)] + [9,000 x P/A(8%, 7) x P/F(8%,…

Q: Consider the cash flow below. Calculate the rate of return for an investment of 1000 T

A: The rate of return for the given cashflows is 5.40%

Q: Why do most of the engineers and financial managers prefer rate-of-return analysis to the PW method?

A: Present worth is defined as the current value of the amount of money that a person will receive in…

Q: What is meant by the term equal service alternative?

A: The equal service alternative refers to the projects that have the same life time.

Q: Because of international competition, a company that manufactures high-speed submersible rotary…

A: The measure that depicts the value of a current asset at a date in the future that is being based…

Q: meant by the term equal service alternative?

A: Equal service means that the products or commodities provide service for an equivalent period of…

Q: A piece of new equipment has been proposed by engineers to increase the productivity of a certain…

A: Investment cost = $2500000 Salvage value = $50000 Per year revenue = $500000 Time period = 15 years…

Q: There are a number of reasons for not paving a rural road, including low traffic volume, property…

A: Construction cost of gravel road (CCG) is $1,025,000. Its maintenance cost (MCG) is $335,000. Time…

Q: Identify at least three noneconomic attributes that may be used as evaluation criteria in the…

A: Decision-making is important to leaders, government and managers. It involves describing the problem…

Q: Lesco Chemical is considering two processes for making a cationic polymer. Process A has a first…

A: here we calculate the AOC of the both investment and choose the best one so here calculation as…

Q: The U.S. Army received two proposals for a turnkey design/build project for barracks for infantry…

A: The term “life-cycle cost analysis” is one of the important economic analysis which is used in…

Q: Adams Manufacturing spent $30,000 on a new sterilization conveyor belt, which resulted in a cost…

A: Manufacturing expense (p) is $30,000 per year. Saving (s) is $4,202 per year. Interest rate is 8…

Q: A municipal bond with a face value of $10,000 was issued today with an interest rate of 6% per year…

A: Face value (FV) is $10,000. The interest rate (i) is 6%. Interest payment is semiannual. Thus, the…

Q: A company sells two products, A and B. The sale mix consists of a composite unit of 2 units of A for…

A: The composite breakeven point for a composite units company is calculated as shown below, by…

Q: An engineer has been offered an investment opportunity that will require an immediate cash outlay of…

A:

Q: A $4,000 face value coupon bond with a $200 coupon payment every year has a coupon rate of:

A: The advantage obtained from a decent or service to a person or firm is measured by its amount. The…

Q: How is the decision procedure used when comparing two or more mutually exclusive projects on the…

A: Rate of return measures helps the investors to select best choice among multiple alternatives are…

Q: The key to present value calculations is that they: Select one: a. are appropriate only for funds in…

A: Present value: Present value (PV) is the present worth of sum of money in future  or cash flows…

Q: The president of Biomed Products is considering a long-term contract to outsource maintenance and…

A: Capital cost: Capital expenses are fixed, once expenses caused on the acquisition of land,…

Q: Identify the following as cash inflows or outflows to a privately-owned water company: well…

A: Cash inflow is the money from sales or investment that are going into the business. Cash outflow is…

Q: The manager of a canned food processing plant must decide between two different labelling machines.…

A: Assuming that a firm is confronted with two totally unrelated tasks, the determination of one of…

Q: James, the plant manager at Global Foundries (GF), received estimates from two contractors to…

A: Initial cost of proposal A (FCA) is $250,000. Time period (n) is 4. Annual maintenance cost (MO) is…

Q: Ihitiative in Texas will significantly expand the wind-generated ivate out the state. The cash flow…

A: a) The number of ROR values expected is 3 because there are 3 sign changes in the Net cash flow .…

Q: A food processing company is considering two types of moisture analyzers. Only one can be selected.…

A: The MARR is the shortened form of the Minimum Accepted Rate of Return of the project or the…

Q: Ten noneconomic attributes are identified as A, B, C, ..., J. If they are rank-ordered in terms of…

A: Weightage (W) for B can be calculated as follows.

Q: Which is the most efficient analysis method we can use for determining project acceptability on an…

A: Present worth analysis is the most efficient analysis method that we can use for determining project…

Q: Dilute hydrogen peroxide (H2O2) is produced in the facility where you work as an engineer. company…

A: Given the first year monthly instalment = 100000 per month Second-year monthly instalment = 150000…

Q: Alternative A has a rate of return of 14% and alternative B has a rate of return of 1796. If the…

A: The incremental rate if return refers to the discount rate that is used to make analysis of the…

Q: Agnes Abanilla was granted a loan of P20,000 by her employer CPM Industrial Fabricator and…

A:

Q: An engineer has been offered an investment opportunity that will require a cash outlay of $40,000…

A: Time period is indicated by ‘n’ and the interest rate is indicated by ‘I’. Present worth (PW) can be…

Q: Because of international competition, a company that manufactures high-speed submersible rotary…

A: Given; Company can invest= $80000 After one year:- FV=-80000(F/P,i,n)+20000+20000(F/A,i,n)…

Q: White Oaks Properties builds strip shopping centers and small malls. The company plans to replace…

A: Annual Payment where F is accumulated sum of amount, n is number of years and that i is…

Q: An individual wishes to establish an endowment for a scholarship fund that generates $9000 every…

A: answer:-

Q: A group of private investors borrowed $34 million to build 200 new luxury apartments near a large…

A: Sensitivity analysis is used to find that when one factor changes then how does other dependent…

Q: An automaton asset with a high first cost of $10 million has required capital recovery (CR) of…

A: Given the capital recovery amount = $1985000 per year. Automation asset with first cost =…

Q: A company is considering purchasing equipment costing $70,000. The equipment is expected to reduce…

A: Initial Cost = 70,000 First 3 year Saving = 7,000 From Year 4 to 8 Saving = 10,000 year 9 saving =…

Q: What do you mean by internal rate of return (IRR)? Find the IRR of an investment having initial cash…

A: Rate of return: It is the profit on an investment.

Q: Two roadway designs are under consideration for access to a permanent suspension bridge. Design 1A…

A: Table 1 shows the cash flow:

Q: Waller County is planning to construct a Dam some tens of miles away from the Hempstead Recreation…

A: GIVEN   Waller County is planning to construct a Dam some tens of miles away from the Hempstead…

Q: The capitalized cost of $ 10,000 , every 5 years forever, starting now at an interest rate of 10%…

A: here we calculate the Capitalized Cost=EUAC(M) by using the formula which are as follow-