Engineering Economic Paper

Engineering Economic
Complete the problems below using Excel:12.2 The Wellington Construction Company is considering acquiring a new earthmover. The mover’s basic price is $90,000, and it will cost another $18,000 to modify it for special use by the company. This earthmover falls into the MACRS five-year class. It will be sold after four years for $30,000. The purchase of the earthmover will have no effect on revenues, but it is expected to save the firm $35,000 per year in before-tax operating costs, mainly labor. The firm’s marginal tax rate (federal plus state) is 40%, and its MARR is 10%.(a) Is this project acceptable, based on the most likely estimates given?(b) Suppose that the project will require an increase in net working capital (spare-parts inventory) of $5,000, which will be recovered at the end of year 4. Taking this new requirement into account, would the project still be acceptable?(c) If the firm’s MARR is increased to 18% and with the working capital requirement from (b) not in effect, what would be the required savings in labor so that the project remains profitable?12.9 Mike Lazenby, an industrial engineer at Energy Conservation Service, has found that the anticipated profitability of a newly developed water-heater temperature- control device can be measured by present worth with the formulaNPW = 4.028V(2X – $11) – 77,860 where V is the number of units produced and sold and X is the sales price per unit. Mike also has found that the value of the parameter V could occur anywhere over the range from 1,000 to 6,000 units and that of the parameter X anywhere between $20 and $45 per unit. Develop a sensitivity graph as a function of the number of units produced and the sales price per unit.12.11 Susan Campbell is thinking about going into the motel business near Disney World in Orlando, Florida. The cost to build a motel is $2,200,000. The lot costs $600,000. Furniture and furnishings cost $400,000 and should be recovered in eight years (seven-year MACRS property), while the motel building should be recovered in 39 years (39-year MACRS real property placed in service on January1st). The land will appreciate at an annual rate of 5% over the project period, but the building will have a zero salvage value after 25 years. When the motel is full (100% capacity), it takes in (receipts) $4,000 per day, 365 days per year. Exclusive of depreciation, the motel has fixed operating expenses of $230,000 per year. The variable operating expenses are $170,000 at 100% capacity, and these vary directly with percent capacity down to zero at 0% capacity. If the interest is 10% compounded annually, at what percent capacity over 25 years must the motel operate in order for Susan to break even? (Assume that Susan’s tax rate is 31%.)12.19 A financial investor has an investment portfolio worth $325,000. A bond in the portfolio will mature next month and provide him with $22,500 to reinvest. The choices have been narrowed down tothe following two options.• Option 1: Reinvest in a foreign bond that will mature in one year. This will entail a brokerage fee of $162. For simplicity, assume that the bond will provide interest of $2,625, $2,225, or $1,825 over the one-year period and that the probabilities of these occurrences are assessed to be 0.20, 0.45, and 0.35, respectively.• Option 2: Reinvest in a $22,500 certificate with a savings-and-loan association. Assume that this certificate has an effective annual rate of 8.4%.(a) Which form of reinvestment should the investor choose in order to maximize his expected financial gain?(b) If the investor can obtain professional investment advice from Salomon Brothers,Inc.,what would be the maximum amount the investor should pay for this service?

Get professional assignment help cheaply

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Don't use plagiarized sources. Get Your Custom Essay on
Engineering Economic Paper
Just from $10/Page
Order Essay

Whichever your reason may is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Our essay writers are graduates with diplomas, bachelor, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college diploma. When assigning your order, we match the paper subject with the area of specialization of the writer.

Why choose our academic writing service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently


Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Open chat
You can contact our live agent via WhatsApp! Via +1 817 953 0426

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 20% with the discount code VICTORY