Let’s assume you work for the company in the example problem on slide 43 of IEE300_Ch03A.pdf. You have been asked to create a presentation for your engineering manager who has taken a course in engineering economy, but over 30 years ago.
slide 43: CGK Rheo systems makes high
performance rotational viscometers capable of steady
shear and yield stress testing in a rugged, compact footprint.
How much could the company afford to spend now on new equipment, in lieu of
spending $200,000 one year from now and $300,000 three years from now, if the
company uses an interest rate of 15% per year?
Sample Solution
