Javier is an IE at Lobos Manufacturing. He has been studying process line G to determine if an automated system would be preferred to the existing labor intensive system. If Lobos wants to earn at least 20% and uses a 15-year planning horizon, which alternative is preferred.

Initial cost	$\$ 0$	$\$ 110,000$
Installation cost	0	18,500
First-year O&M	2,000	4,800
$\quad$ Annual increase	450	950
First-year labor costs	72,000	47,500
Annual increase	$5 \%$	$5 \%$
Salvage value (EOY15)	2,500	20,000

Quinton's refrigerator has just died. He can get a basic refrigerator or a more efficient and environmentally friendly refrigerator with an Energy Star designation. Quinton earns 4% compounded annually on his investments, he wants to consider a 10-year planning horizon, and he will use present worth analysis to determine the best alternative. What is your recommendation?

$$\begin{matrix} \text{ } & \text{Basic Unit} & \text{Energy Star Unit}\\ \text{Initial cost} & \text{700} & \text{800}\\ \text{Delivery and installation} & \text{60} & \text{60}\\ \text{Professional servicing (year 5)} & \text{100} & \text{100}\\ \text{Annual energy costs} & \text{120} & \text{55}\\ \text{Salvage value (year 10)} & \text{150} & \text{175}\\ \end{matrix}$$

Identify two ways a firm's cash flow can be used. Explain why these uses are a trade-off, and explain the opportunity costs of these choices in terms of the firm's future growth.

You supervise an aging production line that constantly needs maintenance and new parts. Last month you spent $25,000 replacing a failed controller. Should the following plan be accepted if the interest rate is 15%? The net installed cost of the new line to replace the old line is$600,000 with a useful life of six years. In the first year its operating cost will be $100,000, and it will generate annual revenues of$300,000. Each year the operating cost will increase by $5000 and the revenues will fall by$15,000. After six years the equipment will have a value of $100,000 in the next re-building of the line

Shown below are the results of water quality analyses of the Mississippi River at Baton Rouge, Louisiana. If the water is treated with 30.00 mg/L of ferric chloride for turbidity coagulation, how much alkalinity will remain? Ignore the side reactions with phosphorus and assume all the alkalinity is $\mathrm{HCO}_{3}^{-}$. Mississippi River, Baton Rouge, Louisiana

$$\begin{matrix} \text{Constituent} & \text{Expressed as} & \text{Milligrams per liter}\\ \text{Total hardness} & \ {CaCO_3} & \text{164.0}\\ \text{Calcium hardness} & \ {CaCO_3} & \text{108.0}\\ \text{Magnesium hardness} & \ {CaCO_3} & \text{56.0}\\ \text{Total iron} & \text{Fe} & \text{0.9}\\ \text{Copper} & \text{Cu} & \text{0.01}\\ \text{Chromium} & \text{Cr} & \text{0.03}\\ \text{Total alkalinity} & \ {CaCO_3} & \text{136.0}\\ \text{Chloride} & \text{Cl} & \text{32.0}\\ \text{Phosphate ( total)} & \ {PO_4} & \text{3.0}\\ \text{Silica} & \ {SiO_2} & \text{10.0}\\ \text{Suspended solids} & \text{ } & \text{29.9}\\ \ {Turbidity^a} & \ {NTU^b} & \text{12.0}\\ \ {pH^a} & \text{ } & \text{7.6}\\ \end{matrix}$$

$^aNot$ in mg/L. $^bNTU$ = nephelometric turbidity units and the pH is dimensionless.

By installing some elaborate inspection equipment on its assembly line, the Robot Corp. can avoid hiring an extra worker who would have earned $36,000 a year in wages and an additional$9500 a year in employee benefits. The inspection equipment has a 6-year useful life and no salvage value. Use a nominal 18% interest rate in your calculations. How much can Robot afford to pay for the equipment if the wages and worker benefits were to have been paid (a) At the end of each year (b) Monthly Explain why the answer in (b) is larger.

A student has a job that leaves her with $300 per month in disposable income. She decides that she will use the money to buy a car. Before looking for a car, she arranges a 100% loan whose terms are$300 per month for48 months at 9% nominal annual interest. What is the maximum car purchase price that she can afford with her loan?

On February 1, the Miro Company needs to purchase some office equipment. The company is short of cash and expects to be short for several months. The treasurer has said that he could pay for the equipment as follows.

$$\begin{matrix} \text{Date} & \text{Payment}\\ \text{April. 1} & \text{\$150}\\ \text{June. 1} & \text{300}\\ \text{Aug. 1} & \text{450}\\ \text{Oct. 1} & \text{600}\\ \text{Dec. 1} & \text{750}\\ \end{matrix}$$

A local office supply firm will agree to sell the equipment to Miro now and accept payment according to the treasurer's schedule. If interest will be charged at 3% every 2 months, with compounding once every 2 months, how much office equipment can the Miro Company buy now? What is the effective interest rate?

After release from rest at B, the 2-lb cylindrical plug A slides down the smooth path and embeds itself in the 4-lb block C. Determine the velocity v of the block and embedded plug immediately after engagement and find the maximum deflection x of the spring(k=80 Ib/ft). Neglect any friction under block C. What fraction n of the original energy of the system is lost?

Cisco, Inc. has a proposal from the Engineering Planning Division to invest some of the Cisco retained earnings in the design, testing, and development of the next generation of smart grids useful in the Internet of Things (IoT) environment. The initial investment projection is $5,000,000 in year 0,$2,000,000 in year 10, and $100,000 in years 11 and beyond. At i = 10% per year, calculate the infinite-life equivalent annual cost in years 0 through infinity of the proposal.

Shown below are the results of water quality analyses of the Thames River in London. If the water is treated with 60.00 mg/L of alum to remove turbidity, how much alkalinity will remain? Ignore side reactions with phosphorus and assume all the alkalinity is $HCO_3^-$. Thames River, London $$ \begin{matrix} \text{Constituent} & \text{Expressed as} & \text{Milligrams per liter}\\ \text{Total hardness} & \ {CaCO_3} & \text{260.0}\\ \text{Calcium hardness} & \ {CaCO_3} & \text{235.0}\\ \text{Magnesium hardness} & \ {CaCO_3} & \text{25.0}\\ \text{Total iron} & \text{Fe} & \text{1.8}\\ \text{Copper} & \text{Cu} & \text{0.05}\\ \text{Chromium} & \text{Cr} & \text{0.01}\\ \text{Total alkalinity} & \ {CaCO_3} & \text{130.0}\\ \text{Chloride} & \text{Cl} & \text{52.0}\\ \text{Phosphate (total)} & \ {PO_4} & \text{1.0}\\ \text{Silica} & \ {SiO_2} & \text{14.0}\\ \text{Suspended solids} & \text{ } & \text{43.0}\\ \text{Total solids} & \text{ } & \text{495.0}\\ \text{pH^a} & \text{ } & \text{7.4}\\ \end{matrix} $$ $^aNot$ in mg/L. Answer: Alkalinity remaining = 99.69 or 100 mg/L as $\mathrm{CaCO}_{3}$

A city engineer knows that she will need $25 million in 3 years to implement new automated toll booths on a toll road in the city. Traffic on the road is estimated to be 3 million vehicles per year. How much per vehicle should the toll be to cover the cost of the toll booth replacement project in 3 years? Interest is 8%. (Simplify your analysis by assuming that the toll receipts are received at year end as a lump sum.)

Design a crank-rocker mechanism with a time ratio of $Q$, throw angle of $\left(\Delta \theta_4\right)_{\max }$, and time per cycle of $t$. Use either the graphical or analytical method. Specify the link lengths $L_1, L_2, L_3, L_4$, and the crank speed.

$$Q=1.36 ;\left(\Delta \theta_4\right)_{\max }=45^{\circ} ; t=1.2 \mathrm{~s}$$

Use part (b) and part (a) to show that q2 is the midpoint of the segment from q1 to the midpoint of the segment from p1 to p2.That is, q2 =1/3 [q1+ 1/3(P1 +P2)].