The companys computer system uses fluid structure


1. Irvin Aerospace of Santa Ana, CA, was awarded a 5-year contract to develop an advancedspace capsule airbag landing attenuation system for NASA's Langley Research Center. The company's computer system uses fluid structure interaction modeling to test and analyze eachairbag design concept. What is the present worth of the contract at 10% per year interest ifthe annual cost (years 1 through 5) is $8 million per year?

2. HydroKlean, LLC, an environmental soil cleaning company, borrowed $3.5 million to financestart up costs for a site reclamation project. How much must the company receive each yearin revenue to earn a rate of return of 20% per year for the 5-year project period?

3. Akron Coating and Adhesives (ACA) produces a hot melt adhesive that provides a strongbond between metals and thermoplastics used for weather stripping, seals, gaskets, hand gripsfor tools, appliances, etc. ACA claims that by eliminating a primer coat, manufacturers cancut costs and reduce scrap. If Porter Cable is able to save $60,000 now and $50,000 per yearby switching to the new adhesive, what is the present worth of the savings for 3 years at aninterest rate of 10% per year?

4. Metropolitan Water utility is planning to up- grade its SCADA system for controlling wellpumps, booster pumps, and disinfection equipment so that everything can be controlled fromone site. The first phase will reduce labor and travel costs by $31,000 per year. The secondphase will reduce costs by $20,000 per year. If phase I will occur in years 1 through 3 andphase II in years 4 through 8, what is the equivalent annual worth (years 1 through 8) of theupgraded system at an interest rate of 8% per year?

5. A supplier of certain suspension system parts for General Motors wants to have a contingencyfund that it can draw on during down periods of the economy. The company wants to have $15million in the fund 5 years from now. If the company deposits $1.5 million now, what uniformamount must it add at the end of each of the next 5 years to reach its goal if the fund earns arate of return of 10% per year?

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Business Management: The companys computer system uses fluid structure
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