Ch 2 Questons
2.10 Bodine Electric makes gear motors with a three-stage, selectively hardened gearing cluster that is permanently lubricated. If the company borrows $20 million for a new warehouse/distribution facility, determine the annual payments to repay the loan in six equal annual payments at an interest rate of 10% per year?
2.11 A small oil company wants to replace its Micro Motion Coriolis flowmeters with Emerson F-Series flowmeters in Hastelloy construction. The replacement process will cost the company $50,000 three years from now. How much money must the company set aside each year beginning one year from now in order to have the total amount in three years? Assume the company will invest its funds at 20% per year.
2.12 Ametek Technical & Industrial Products manufactures brushless blowers for boilers, foodservice equipment, kilns, and fuel cells. The company borrowed $17,000,000 for a plant expansion and repaid the loan in eight annual payments of $2,737,680, with the first payment occurring one year after the company received the money. What was the interest rate on the loan?
2.13 The cost of a border fence is $3 million per mile. If the life of such a fence is assumed to be 10 years, what is the equivalent annual cost of a 10-mile long fence at an interest rate of 8% per year?
2.14 Silastic-LC-50 is a liquid silicon rubber designed to provide high clarity, superior mechanical properties, and short cycle time for high speed manufacturers. One high-volume manufacturer used it to achieve smooth release from molds. The company’s projected growth would result in silicon costs of $26,000 in year 1 and costs increasing by $2000 per year through year 5. At an interest rate of 10% per year, what is the present worth of these costs?
2.15 Calculate the equivalent annual cost
2.11 A small oil company wants to replace its Micro Motion Coriolis flowmeters with Emerson F-Series flowmeters in Hastelloy construction. The replacement process will cost the company $50,000 three years from now. How much money must the company set aside each year beginning one year from now in order to have the total amount in three years? Assume the company will invest its funds at 20% per year.
2.12 Ametek Technical & Industrial Products manufactures brushless blowers for boilers, foodservice equipment, kilns, and fuel cells. The company borrowed $17,000,000 for a plant expansion and repaid the loan in eight annual payments of $2,737,680, with the first payment occurring one year after the company received the money. What was the interest rate on the loan?
2.13 The cost of a border fence is $3 million per mile. If the life of such a fence is assumed to be 10 years, what is the equivalent annual cost of a 10-mile long fence at an interest rate of 8% per year?
2.14 Silastic-LC-50 is a liquid silicon rubber designed to provide high clarity, superior mechanical properties, and short cycle time for high speed manufacturers. One high-volume manufacturer used it to achieve smooth release from molds. The company’s projected growth would result in silicon costs of $26,000 in year 1 and costs increasing by $2000 per year through year 5. At an interest rate of 10% per year, what is the present worth of these costs?
2.15 Calculate the equivalent annual cost