Exam 5 key-1 (1)

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University of Nebraska, Lincoln *

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206

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Mechanical Engineering

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Feb 20, 2024

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Cxam S An equipment cost $80,000 initially. The market value has been declining at the rate of $15,000 yearly. The O & M costs in year 1 were $10,000 and have been increasing by $2,000 from year 2. Determine the minimum cost life of this equipment for a MARR of 10 %. The EUAC of the challenger for an economic life of 5 years is $8,550. The marginal cost of the defender is provided in the table below. Determine when the defender should be replaced. Year 1 2 3 4 5 Marginal Cost, $ |7,500 |8,000 8,500 9,000 9,500 The cost of a first-class postage in 1970 was $0.06 and in year 2016 was $0.47. Determine the average annual rate of increase in the price of postage stamps during the years 1970 to 2016. An equipment was purchased two years ago financing for 5 years at 8% interest compounded monthly. The inflation rate for the past two years has been 3% per year and is expected to remain the same for the next 3 years. Compute the real interest rate for this loan. The tuition in a private university was $25,000 per academic year in 1999. If the inflation rate has been averaging at the rate of 3%, how much one should have invested in 1999 to send a student to this private university in 2017. Assume the investment earned an 8% return.
What is the Economic life of the Defender? Year Defender Marginal Cost Defender EUAC |Challenger EUAC 1 $6120 $6500 $6700 2 $1800 $4200 $4300 3 $2800 $3000 $2900 4 $3800 $2650 $2500 5 $4800 $2700 $2700 ve Usina the cost information b"éfiw when (if at all) should the defender be replaced by the challenger? With an inflation rate of 3%, what interest rate should an investor agree to if he or she is looking to earn a real rate of 6.5%7? As a licensed engineer, you have a professional obligation to report ethical violations in the workplace except those involving... An engineer has signed a contract to produce a product by a set deadline. Within the contract, the product materials, colors, and dimensions are specified. However, the work has taken longer than anticipated and the deadline is quickly approaching. In order to expedite the process to meet the deadline, an engineer can...
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