Removing an engine is being discussed. Technician A says that it is not necessary to remove the air conditioning compressor or refrigerant from some cars. Technician B says that it is not necessary to disconnect or remove the battery. Who is correct?
A. A only
B. B only
C. Both A and B
D. Neither A nor B
Answer: A
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What will be an ideal response?
A company that manufactures high-speed submersible rotary-indexing spindles is considering an upgrade of production equipment to reduce costs over the next 5 years. The company can invest $80,000 now, 1 year from now, or 2 years from now. Depending on when the investment is made, the savings will vary. The saving estimates are $26,000, $31,000, or $37,000 per year if the investment is made now, 1 year from now, or 2 years from now, respectively. The company will only invest if the ROR is at least 20% per year. Using a future worth analysis, determine if the timing of the investment will affect the return requirement and, if so, when the investment should be made. Solve by (a) hand, and (b) spreadsheet.
What will be an ideal response?
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