excel Hw 6
KAKA
assignment_6.docxAssignment:
Complete the following problems. You must show your work on the math problems to get full credit.
1. (Chapter 8) A city government is considering two types of town-dump sanitary systems. Design A requires an initial outlay of $500,000 with annual operating and maintenance costs of $75,000 for the next 20 years; design B calls for an investment of $400,000 with annual operating and maintenance costs of $95,000 per year for the next 20 years. Fee collections from the residents would be $100,000 per year. The interest rate is 10%, and no salvage value is associated with either system.
By the benefit-cost ratio (BC(i)), which system should be selected?
2. (Chapter 9) Identify which of the following expenditures is considered as a capital expenditure that must be depreciated (capitalized):
a) Purchased a fax machine for $10,000.
b) Painted the warehouse building, both interior and exterior, for $20,000.
c) Installed a water dispenser in a company dining area for $2500.
d) Paid $15,000 to lease a dump truck for six months.
e) Purchased a patent on an energy-saving device over five years at a cost of $35,000.
f) Purchased a spare part for a framing machine for $4,000.
g) Repaved a parking lot for $20,000.
h) Installed a conveyor belt system to automate some part of a production processes for $50,000.
i) Purchased land to build a new facility for $350,000.
3. (Chapter 9) Consider the following date on an asset:
Cost of the asset, I: $150,000
Useful life, N: 5 years
Salvage value, S: $16,000
Compute the annual depreciation allowances and the resulting book values, using the following methods:
a) The straight-line depreciation method,
b) The double-declining-balance method.
Formatting:
Text Size: All of the text in this assignment needs to be set in 10 or 12-point size. Please resist the temptation to mix and match point sizes. If you doubt your applications intentions, just select all of your text and insure that it is in 10 or 12-point size.
Margins: The right and left side can be set for ½” (0.5) margins. Set the top and bottom margins to one (1”). The only text that ends up on the outside of the one-inch margin is the page number.
Name Block: Place the name block in the upper left corner of the page. In MS Excel, use the left side cells. In this class the name block only needs to be on the first page. Put your name first , then the class title and then the date . Example:
Your Name
TECH 452 –Engineering Economics
Title: Skip one cell and place the title on the left, just below the name block. The title for this assignment is “Homework 6”.
Spelling/Grammar Checking: Remember to do your spelling and grammar checking before turning your assignments in. When doing the spelling/grammar checking keep in mind that some words such as mush and must, woods and words, or here and cow, will not be caught by either check. To correct these problems, you will need to proofread your work.
Page Numbers: Any homework that has more than one page needs to have page numbers on it. Please place your page numbers on the bottom of the page. In MS Excel, use the footer selection and place the page number in the bottom center or bottom right of the page.
Content:
Problem Number: List each problem’s number on the left, placing a blank cell above it.
State or summarize the Problem: For this assignment,you may state the problem either exactly as it appears in the book or you may summarize the all the values, terms and percentages. This is to help insure that you use the correct values in your calculations. If you chose to summarize, this will count as stating the given. You will need to break long text up between cells so that you will stay with-in the printing boundaries of the page.
State the Given: Skip one cell and write the word “Given:” Follow that with what is known from the problem. If the problem has multiple parts, place the letter of each part before the “Given”. If the problem has a table, then reproduce the table.
Solve the Problem: Show your work in solving the problem.
