Question
I need only answers within 2 hours. (1) Consider the investment project below, which has a four-year investment life (n = 0 through 4). Project
I need only answers within 2 hours.
(1) "Consider the investment project below, which has a four-year investment life (n = 0 through 4).
Project ($)
-2500
-2300
-600
5200
5200
What is the discounted payback period at an interest rate of 13.8%? Enter your answer as an integer. If the project never pays itself back, enter a 0."
(2) "Consider the investment project given below for n = 0 through 3: ($)
-15,900
-5,100
-18,100
7,800
Compute the net future worth of each project at i = 11.9%."
(3) "A manufacturing company is considering a new investment in a machine that will cost $140,000 and has a maintenance cost of $6,200 that occurs every 2 years starting at the end of year 2. Assuming that this equipment will last infinitely under these conditions, what is the capitalized equivalent cost of this investment at the rate of 9.7%? Enter your answer as a positive number."
(4) "You are considering two investment options. In option A, you have to invest $8,000 now and $6,000 exactly 4 years from now. In option B, you have to invest $4000 now, $1900 one year from now, and $6,000 exactly 4 years from now. In both options, you will receive 5 annual payments of $4,000 each. (You will get the first payment exactly one year from now.) If the interest rate is 8.2% compounded annually, what is the net present value of your preferred investment option? If you decide neither option is good, enter 0."
(5) "Consider the following cash flow and compute the equivalent annual worth at i = 17.5%.
The cash flow for years 0 through 6 in dollars is:
19,000
-5,700
-5,700
-7,600
-11,800
-13,200
-17,200
The answer could be negative."
(6) "The military is considering purchasing a new transport helicopter. It is believed the helicopter will be needed for 28 years. Helicopter 1 has an immediate purchase cost of $105,000; the annual maintenance is $6,000; and it can be salvaged for $16,000 at the end of its service life of 4 years. Helicopter 2 has an immediate acquisition cost of $111,000; the annual maintenance is $7,000; and it can be salvaged for $32,000 at the end of its service life of 7 years. Assume both helicopters can be purchased and operated repeatedly at the same costs. What is the annual equivalent cost of the helicopter that the military should purchase if the interest rate is 10.5%?"
(7) "The cost in dollars of operating a jet-powered commercial airplane Co is given by the following equation
Co = k*n*v^(3/2)
where
n is the trip length in miles,
v is the velocity in miles per hour, and
k is a constant of proportionality.
It is known that at 453 miles per hour the cost of operation is $440 per mile. The cost of passengers' time in dollars equals $356,000 times the number of hours of travel. The airline company wants to minimize the total cost of a trip which is equal to the cost of operating plus the cost of passengers' time.
At what velocity should the trip be planned to minimize the total cost?
HINT: If you are finding this difficult to solve, arbitrarily choose a number of miles for the trip length, but as you solve it, you should be able to see that the optimal velocity does not depend on the value of n."
(8) "A contributing factor to an airplane's duel consumption is the bypass ratio of the engine system. The bypass ratio is the amount of air passing around the engine core relative to the amount of air passing through the core. An airplane manufacturer is designing a new airplane and wants to determine the bypass ratio for the airplane's engine system. The airplane will fly 3,700 hours per year and will average 490 miles per hour. The amount of fuel that the airplane consumes can be expressed as:
z = 0.0532 - (8.08*10^-4) * y
for 4<y<12
where y is the bypass ratio (a unitless number) and z is the number of gallons of fuel consumed per mile flown by the airplane. The cost of fuel remains constant at $4.98 per gallon.
The initial cost of the engine system as a function of the bypass ratio is $258,000 + $2,300y^2.
The engine system will be used for 14 years. At the end of 14 years, the salvage value of the engine system as a function of bypass ratio is $11,000y. The airplane manufacturer wants to minimize the annual equivalent cost (AEC) of the engine system (which includes the initial cost, the annual cost of fuel, and the salvage value). The manufacturer's MARR is 12.5%. What is the optimal bypass ratio rounded to the nearest tenth that minimizes the AEC of the engine system?
(The optimal answer for the bypass ratio is between 4 to 12, but it should not be necessary to consider that constraint in your calculations.)"
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started