1. Business
  2. Accounting
  3. hello i need help solving these problems for engineering economy...

Question: hello i need help solving these problems for engineering economy...

Question details

Hello! I need help solving these problems for engineering economy. Please show the full solution and all work for BOTH PROBLEMS. please write neatly and large (the resolution of photos on the site are low). please be as detailed as possible and answer BOTH questions. Thank you

1. Remerowski Corporation Inc. asks you to estimate the cost to purchase a new piece of production equipment. The company purchased this same type of equipment in the past for S10,000. The original equipment had a capacity of 2000 units, while the new equipment has a capacity of 1000 units. The power sizing exponent for this type of equipment is 0.28. in addition, the cost index for this type of equipment was 126 when the original unit was purchased and is now 160, If Remerowiski uses an 8% annual interest rate to evaluate equipment purchases, estimate the cost to purchase the new piece

2. A young engineer wishes to buy a house and can afford monthly payments of $700. Seven-year loans are available at 100 monthly. If she can make $10,000 down payment, what is the price ofthe most expensive house that she can afford to purchase?

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution