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Engineering Economics Question. 1 A company hasgiven the option of work from home or coming to the office on account of the pandemic for five

Engineering Economics Question.

1 A company hasgiven the option of work from home or coming to the office on account of the pandemic for five years period. If the employee opts for work from home, there is one-time expenditure of Rs. 1.08 lakh to setup an office at home and a computer that cost Rs. 0.61 lakhs at the beginning. There is an annual expenditure of Rs. 0.69 lakhs on internet cost and electricity which is expected to increase by Rs. 0.23 lakhs from the second year. What is the present worth of the alternative at 8% interest?

2 A person working for a private company owns a house to spend the retirement life. Currently she is 25 years old and plans to retire from the corporate job at the age of 55. For this purpose, she wants to setup a fund to finance the-post retirement expenses for perpetuity. She thinks that having an annual income of Rs. 59.06 lakhs to take care of the post-retirement expenses after taking into account inflation. If she wants to setup a fund by contributing equal annual amounts and invest it at 15% rate of return, how much money needs to be saved annually.

Note: Use factor values from the shared pdf. Insert VALUES upto 2 DECIMAL PLACES WITH SIGN in the SAME UNITS as mentioned in the question.

3 An employee of the centralgovernment is using a car which is eight years old. It can be sold now at Rs. 2.26 lakhs or can be kept for another seven years. In that case the annual operation and maintenance cost will be Rs. 0.34 lakhs, one-time expenditure of Rs. 0.31 lakhs after 3 years and a salvage value of Rs. 0.8 lakh at the end of 7thyear. what is the annual worth of the existing car at 8% rate of interest?

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