5. Total return on an investment. - Calculate the annualized, compounded rate of return for the following investment: purchase price $65,000; sale price $850,000; holding period 30 years.

Engineering Economy Project Water desalination is a major process to supply clean drinking water in many countries around the World. The International Atomic Energy Agency has developed economic tools to assess the economic aspects of water desalination using a range of technologies. Using the IAEA Desalination Economic Evaluation Programme (DEEP) https://www.iaea.org/topics/non-electric-applications/nuclear-desalination You are requested to work with your team to estimate the water desalination cost in terms of water production and energy consumption as requested below 1. Select the Power Plant type for your Desalination Plant and justify your selection. 2. Investigate the effects fuel option on the water and energy production costs 3. Investigate the effects of technology option 4. Select a power plant technology and justify your selection 5. Investigate the effects of Power Plant Efficiency on the water and energy costs 6. Investigate the effect of the Desalination Capacity on the water and energy costs 7. Investigate the effects of Carbon Prices on the water and energy costs 8. Investigate the relationship between discount rate and water and energy production costs for your selected process 9. Investigate the effects of interest rates on your production costs on the water and energy costs 10. Investigate the relationship between fuel escalation rate and water and energy production costs 11. Comment on the results and make recommendations

Present Worth, Annual Worth: 1.1 The cash flow associated with making self-locking fasteners is shown below. Determine the net present worth (year 0) at an interest rate of 10% per year. 1.2 Two engineering graduates who recently got married are planning for their early retirement 20 years from now. They believe that they will need $2,000,000 in year 20. Their plan is to live on one of their salaries and invest the other. They already have $25,000 in their investment account. (a) How much will they have to invest each year if the account grows at a rate of 10% per year? (b) If the maximum they have available to invest each year is $40,000, will they reach their goal of $2 million by year 20? 1.3 For the cash flow diagram shown, determine the value of W that will render the equivalent future worth in year 8 equal to $500 at an interest rate of 10% per year.

Investments and Project Acceptance: 1. A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash flows shown ($1 million units). Which one should be selected on the basis of a present worth analysis at 10% per year? 2. A metallurgical engineer is considering two materials for use in a space vehicle. All estimates are made. (a) Which should be selected on the basis of a present worth comparison at an interest rate of 12% per year? (b) At what first cost for the material not selected above will it become the more economic alternative? 3. Machines that have the following costs are under consideration for a robotized welding process. Using an interest rate of 10% per year, determine which alternative should be selected on the basis of a present worth analysis. Show (a) hand calculations 4. Ashley Foods, Inc. has determined that any one of five machines can be used in one phase of its chili canning operation. The costs of the machines are estimated below, and all machines are estimated to have a 4- year useful life. If the minimum attractive rate of return is 20% per year, determine which machine should be selected on the basis of a rate of return analysis.

Capital Cost 1. A wealthy businessman wants to start a permanent fund for supporting research directed toward sustainability. The donor plans to give equal amounts of money for each of the next 5 years, plus one now (i.e., six donations) so that $100,000 per year can be withdrawn each year forever, beginning in year 6. If the fund earns interest at a rate of 8% per year, how much money must be donated each time? 2. Compare the alternatives shown on the basis of their capitalized costs using an interest rate of 10% per year.

Accounting Concepts 1. List and explain the 9 steps in carrying out accounting process. 2. Using the steps outlined above, illustrate the preparation of the following over a 12-month period: XYZ Ltd is formed January 2018, with capital of $1,000 deposited to the bank. Monthly the company has rent of $50, people overheads $12, Utilities $5, Depreciation on equipment purchase for $200 in the amount of 20% using the straight-line method, Other costs for fees and permits. There are monthly sales of the widgets it produces through its virtual manufacturing operations of $500 and the direct materials and direct labour are $200 and $50 respectively. a. Annual production Budget b. Prime cost and monthly cost of goods sold C. Cash book entry for first two months of start-up. d. Journal entry for first 3 months e. Statement of Income and expenditure (12 months) f.Balance sheet (12 months)

Overheads, Budgets and Cost Concepts 1. Outline the main types of overhead costs and provide examples of each 2. Outline the budgeting process illustrating how you would classify each cost & create a single budget for the following: a. Company with 5 persons paid minimum wage, health & insurance at 30% of salary, bonus and food cost at 10 and 5% respectively. b.Light, water, HVAC, $50, $45, $20 respectively C Depreciation on assets at 10% of asset value. d. Maintenance cost at 6.8% of asset value

5. Two machines are evaluated for a new project, consider a yearly interest rate of 6% and the information described in the following table. Determine EUAC for both alternatives and determine the best option.

1. Nichole bought a $15,000 car and after using it for 5 years she sold it for $2,500. Determine the EUAC consider an interest rate of 7% per year. Hint only consider capital costs. printer

2. Sam thinks that he may be able to earn $7,000 per year by providing 3D printing services to the Sam is thinking about buying a new 3D printer. The printer costs $13,000 and requires a yearly maintenance local community. Consider that the printer may work for 10 years. Use a 10% yearly interest rate determine the following: a. EUAW with no salvage value b. EUAW with a salvage value of $3,500