Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 6, Problem 13P
To determine

Calculate the rate of return.

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Smith, a U.S. citizen, has been working as an executive of a  telecommunication company in U.S., and her annual salary in 2014 was US$220,000.  Her salary was expected to remain unchanged if she continued to work in the company. At the end of the year 2014, however, she was recruited by a media company in Brazil, so she started working in Brazil from January 2015, making an annual salary of US$250,000.  Assuming that the amount of her salary equals the amount of her contribution to the production in the company she works for, how much the annual U.S. GDP and GNP in 2015 was changed due to her job relocation?  Clearly show the reasoning for your answer.
Texas Governor Rick Perry promised to put hundreds of cameras on the Texas-Mexico border and broadcast the video over the Web so that anyone, anywhere could become a border patroller, helping root out border crime and illegal crossings. As part of that project, Texas secured a federal grant for $3 million that paid for 200 mobile cameras in strategic high-traffic areas. If the 200 cameras are considered to be equivalent to 20 border patrol agents, each with an annual salary of $75,000, what is the rate of return over a 3-year project period?
The council members of a small town have decided that the earth levee that protects the town from flooding should be rebuilt and strengthened. The town engineer estimates that the cost of the work at the end of the first year will be $68,000. He estimates that in subsequent years the annual repair costs will decline by $7000, making the second-year cost $61,000; the third-year $54,000, and so forth. The council members want to know what the equivalent present cost is for the first 5 years of repair work if interest is 6%.

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Basics Of Engineering Economy

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