Civil and Environmental Engineering Answers

Pneumatics Engineering purchased a machine that had a first cost of $40,000, an expected useful life

of 8 years, a recovery period of 10 years, and a salvage value of $10,000. The operating cost of the

machine is expected to be $15,000 per year. The inflation rate is 6% per year and the company’s MARR

is 11% per year. Determine (a) the depreciation charge for year 3, (b) the present worth of the third-

year depreciation charge in year 0, the time of asset purchase, and (c) the book value for year 3

according to the straight line method.

An asset that is book-depreciated over a 5-year period by the straight-line method has BV3 = $62,000

with a depreciation charge of $26,000 per year. Determine (a) the first cost of the asset and (b) the

assumed salvage value.

Lee Company of Westbrook, Connecticut, manufactures pressure relief inserts for thermal relief and

low-flow hydraulic pressure relief applications where zero leakage is required. A machine purchased 3

years ago has been book-depreciated by the straight-line method using a 5-year useful life. If the book

value at the end of year 3 is $30,000 and the company assumed that the machine would be worthless

at the end of its 5-year useful life, (a) what is the book depreciation charge each year and (b) what was

the first cost of the machine?

A southwestern city has a contract with Firestone Vehicle Fleet Maintenance to provide maintenance

services on its fleet of city-owned vehicles such as street sweepers, garbage trucks, backhoes, and

carpool vehicles. The contract price is fixed at $45,000 per year for 4 years. If you were asked to convert

the future amounts into constant-value amounts per today’s dollars, what would the respective amounts

be? Assume the current market interest rate of 10% per year and inflation rate of 5% per year are

expected to remain the same over the next 4-year period.

Assume the inflation rate is 4% per year and the market interest rate is 5% above the inflation rate.

Determine (a) the number of constant-value dollars 5 years in the future that is equivalent to $30,000

now and (b) the number of future dollars that will be equivalent to $30,000 now.

A doctor is on contract to a medium-sized oil company to provide medical services at remotely located,

widely separated refineries. The doctor is considering the purchase of a private plane to reduce the

total travel time between refineries. The doctor can buy a used Lear jet now or wait for a new very light

jet (VLJ) that will be available 3 years from now. The cost of the VLJ will be $1.9 million, payable when

the plane is delivered in 3 years. The doctor has asked you, his friend, to determine the present worth

of the VLJ so that he can decide whether to buy the used Lear now or wait for the VLJ. If the MARR is

15% per year and the inflation rate is projected to be 3% per year, what is the present worth of the VLJ

with inflation considered?

suppose the lowest point of a Ferris wheel is 2 meters off the ground, and its radius is 12m. Starting at the lowest point, it makes one complete revolution every 3o seconds. Find a cosine function that gives the height above the ground of a riding child in terms of the time t in second

Find the tangent lines as directed to the parabola (x+2y)^2+2x-y-3=0 parallel to the line 4x+3y=2

Ideal topography/terrain of the selected location for the circuit;

A weekly business magazine offers a 1-yearsubscription for $58 and a 3-year subscription for $116. If

you thought you would read the magazine for at least the next 3 years, and consider 20% as a minimum

rate of return, which way would you purchase the magazine: With three 1-year subscriptions or a single

3-year subscription?