What is the estimated cost of the replacement

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Reference no: EM131329468

1) The construction equipment that Armstrong Inc. purchased in 2008 for $M must be replaced in 2012. The index table is given below:

Year 2007, 2008, 2009, 2010, 2011, 2012

Index i2007 i2008 i2009 i2010 i2011 i2012

What is the estimated cost of the replacement?

(a) M(1+I2008) (b) M(1+I2012) (c) M(I2012/I2011) (d) M(I2012/I2008)

2) SmartBook Inc. calculates the shipping cost for online orders as follows: a flat fee of $P for each order plus an additional cost based on the weight of the package to send:

Weight of the package Rate 0< weight≤10 lb $v1/lb 10 50

What is the shipping cost for an order with 18 lb?

(a) 18v2 (b) P+10v2 (c) P+18v2 (d) P+50v2

3) The Industrial department has a team that is designing a new car. The time required for the team to assemble the first car is 100 hours. Their improvement (or learning rate) is 0.8, which means that as output is doubled, their time to assemble a car is reduced by 20%. Use this information to determine

(a) the time it will take the team to assemble the 10th car.

(b) the total time required to assemble the first 10 cars.

Reference no: EM131329468

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