Fairleigh Dickinson University Gildart Haase School of Computer Seiences and Engineering ENGR4210 Managerial and Engineering Economic Analysis EGTG4269 Management and Engineering Economies ame: ID Number You are considering an investment that costs $5,000. It is expected to have a useful life of 3 years You are very confident about the revenues during the first and the third year, but you are unsure about the revenue in year 2. If you hope to make at least a 10% rate of return on your investment ($5,000), what should be the minimum revenue in year 2? YearCash Flow 5,000 1,200 1200 New machine will have an estimated service life of 10 years with a after tax salvage value $3000. Its annual net after tax operating cash flows are estimated to be S40,000. To expect a 15% rate of return on investment, what would be purchasing price of the injection molding machine? 2 A new investment project is proposed. The required initial investment is $150,000 and the expected salvage value is SS,000 at the end of 3 years. A 8% return on investment is desired. What should be the minimum annual net cash flows over three years? X+ 15,000 Given: cash flow series, rate of return-896, N-3 years Find: X, when Pw = 0 4 Find the rate of return for the following infinite cash flow series. Flow 0 -35,350 1 2500 2 2500 Year fiven: cash flow series, N years Find: rate of return