compatibility engeering
- (12 points) An Engineer is evaluating a new energy efficient motor that has a life of 5 years
Using this motor would result in energy savings of $400 in 1st year then increasing annually by 6% through the 5 year life.
If i = 10%
- What is the present value of the 5 years’ energy savings?
- What is the future value of the 5 years’ energy savings at end of year 5?
- (12 points) On the Tesla website, it has the new Model X price listed at $89,990. Tesla will take $5300 off this price for what they call a gasoline savings. Then there is an additional charge of $1200 for destination and document fees.
Tesla requires a down payment of $7500. The loan will require 72 monthly payments.
Let’s say the interest rate is 2.49% nominal rate compounded monthly.
- What is the loan amount?
- What is the monthly interest rate?
- What will your monthly car payment be if you buy it?
- Solve the following cash flow problems
- (10 points) What is $15000 20 years from now worth today with an interest rate of 8%?
- (10 points) If you invest $15000 today in an investment that returns 10% a year, how much is it worth 40 years from now.
- (10 points) You invest $5000 year 1 and $3000 year 3. Each investment makes 10% a year. How much to do have at end of year 4.
- (12 points) Let’s say that after taxes, for the year, you make $38,000. Your expenses for the year—food, rent, clothes, etc. are $28000. Out of the $10,000 left, you decide to save $5000 a year for retirement. Let say you save $5,000 each year for 40 years. You invest into an investment which pays 8% per year. How much will you have after 30 years?
- (12 points) Investors invest $80,000 to start a company. In the first year, the company makes 2000 units of its product and sells them for $500 each. Direct labor costs were $100 per unit and material costs were $200 per unit. During the year you take out a $10000 loan from the bank. Show the income statement for this company for this first year.
- (10 points) The year’s fixed costs for a web site development consulting firm are $40,000. If they charge $60/hour and their variable cost per hour is $30, what is their breakeven amount of hours for the year?
- (12 points) The cost of a new product is equal to Labor cost plus Material cost plus Overhead cost.
Use the number of hours of labor it takes to make the 100th unit to determine the labor cost. The first unit took 40 hours and the labor rate is $40/hr. The learning curve for this product is 80%.
Per unit material cost was $500. Overhead is 120% of the Material cost.
What is the cost of the new product?
- (3 points extra credit) What are 4 ways that you can ask for other peoples’ money?
- (3 points extra credit) Why are you worth a $70000/year salary on day one of your first engineering job with little or no experience?
